Long

GOLD - The Bull Awakens

Updated

A few important things are happening in the markets this morning.
In gold we are breaking out of the triangle. Before anyone would try to short this -of course it's always possible that we drop back into the triangle 5 minutes after this post - I would would warn that most probably we are going to get a very powerful move this week.

During the summer decline we had a strong resistance at 1206. On the 13th Aug we broke it down and gold printed its yearly low at 1160$.
Then we tested back 1206, price marginally broke higher and gold entered a multi week consolidation. In this range 1206 was also a very important level what we tested many times. Finally on the 11th of October gold had broken out of the range. A day later a new - triangle - consolidation started which we broke today morning.

The 13th October rally had broken the 50 MA and the 100 MA on the same day.
God had every chance during the last 2 weeks to test back 1206 or the 50 MA or at least the 100 MA. Non of those happened.

For me the next important level is the 200 MA (1262)and the minimum target from the pattern at 1280$. That's where we are heading in the following days if this breakout holds.

Indicators are also showing strength:
- The RSI5 is printing the overbought zigzag what I like to see in the bull advance.
- MACD was not able to cross over and heading higher.

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Clear breakout.

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Higher high too. I don't think they can reverse this especially because I think the dollar is going to drop.

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I think the ping-pong and "let's test back the support fifty times" is over.
Now we need all those who left behind in the dust to start to chase the price.

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This is the hourly candle where you can add or pick your entry in gold

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Triangle trendline back tested and tagged the 200 SMA on the hourly too.

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The 200 SMA was important in the decline and will be important in the upward move:

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I just noticed our favourite indicator gave a buy signal.
I added to the position here:

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Back test done. Shall we begin?

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I guess Asia will buy some gold in the morning.
The dollar is holding back XAUUSD from the big rally.
Look at XAUEUR:

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Asia is buying.

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Incoming spike.

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I still don’t understand why bears think this chart is bearish

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Even if it’s just a correction and we starting a bear market it won’t last for only a month.

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Goldship to Houston launch codes 1-2-6-0.
Codes accepted.

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Many cycle analyst talking about a move into the DCL. I think the DCL is behind us hidden in the range on the 28th Sept and we are exactly at the half cycle low today.
Why ?
1. We just tagged the 100 SMA today.
2. the RSI3 and RSI4 got overbought
3. Bjorndicator gave the buy signal.

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This is almost exactly what I wanted to see. We broke down the 100SMA but it was a one day event. I still think gold’s biggest 2018 rally is coming in November.

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Clear breakout.

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My only concern that we are getting late in this daily cycle.

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Holding the long position.
Cycles are amazing.

Trade closed manually

Getting late in the cycle.
Both the daily and the intermediate cycle. I’m going to take profits here and wait for the next opportunity.

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Heiken printed a red candle.

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We broke below the breakout level.

And broke down significantly the uptrend channel.

It Seems the daily cycle topped.

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I’m flat in gold but I would definetely get out of every long position.

chartwatchers

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by chartwatchers

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