Gold Correction Alert

SteveS said:
So it's bad to hold stocks long term, eh? try telling that to my cousin, who inherited a few things from a reclusive, distant relative who had been living on the Isle of Man (late 80s). A bit of cash, a few trinkets, a small house and a very old portfolio of shares, most of which the guy had owned since the 50s. I can't recall the details (I was focused on fighting the urge to smack his smug, ugly face while he was telling me) but he became very, very rich off the back of those shares. 20 million quid, back when that was a lot of money.

I still hate the smug, ugly bastard. :)
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SteveS,

Perhaps that was the old days where Stock trading is not all managed or highly manipulated & executed using computer algorithm.
With the new Quant Trading system (http://pro.portphillippublishing.com.au/s8qualivepromo/EQUAS824) & High Frequency Trading (HFT - http://www.phoenix.com.mt/), people can play and invest in the stock market automatically :o

This is why long term means it is uncertain & unpredictable according to what Mr. Kiyosaki said in the video link:mad:.
 
I almost added to NST today. Also considered EVN. I think there's a chance of more weakness in EVN, as it still has the retail entitlement to complete @ 2.05.
 
TreasureHunter said:
It (the correction) is happening... gosh
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Hopefully nobody here is surprised.

The next challenge is to figure out how deep and for how long the correction runs.....
 
BuggedOut said:
TreasureHunter said:
It (the correction) is happening... gosh
Click to expand...

Hopefully nobody here is surprised.

The next challenge is to figure out how deep and for how long the correction runs.....
Click to expand...

Is that predictable by any methods or charting technical analysis ?
 
masmas said:
BuggedOut said:
TreasureHunter said:
It (the correction) is happening... gosh
Click to expand...

Hopefully nobody here is surprised.

The next challenge is to figure out how deep and for how long the correction runs.....
Click to expand...

Is that predictable by any methods or charting technical analysis ?
Click to expand...


The 200 week simple moving average will act as some support 1290
Recent history price action also supplies congestion from around 1275

So expect a bounce or reversal somewhere around these levels. if it breaks through these levels those numbers will act as resistance
 
Alright - reversal hammer supported by divergence in oscillators, not supported by volume yet we'll see tonight in the US market. If it gets above 1314 USD tonight we are breaking up, if it dips below 1303 tonight some more downwards movement likely. if up, stops set at 1303.

Bull case is supported by USD weakness, bull case for XGD is supported.
 
Gold bounced sharply off its 100 day moving average at 1303, which is significant from a technical perspective. Though tonite it's the U.S. jobs data which is capable of pushing gold strongly in either direction, so it's a day to watch for a shift in fundamentals IMHO.

I'd much rather wait until after the announcement and take a position Monday, though I do expect a bit of a bounce in gold stocks this morning. I am very tempted to buy some out-of-the-money call options today, but it really is gambling on the jobs number at this point.

From a purely technical perspective I'd like to see some price consolidation in gold, and I'd still prefer to see a more controlled correction play out over the next month as that'll give more confidence for the next push up, but you can't always get what you want :p
 
I recognise the non-farm info is out tonight and that has power for gold.
Just going on the charts it looks well bullish though
A nibble today is worth the bet IMO
 
I decided to pick up some calls this afternoon on Newcrest to hold over the weekend. A small risk with potential sharp upside if the jobs number comes in less than expected.

17623_gold20160902.png


Chart showing the correction in play over the last 2 weeks on a 1 hour chart. Fairly clear downward channel that might be slighly narrowing. Bounce off the 100 DMA is significant technically and now with the price sitting right on the resistance line there could be a sharp move upward if it can break that resistance with some good news (a change in fundamentals overrides technicals here).

Overall I am still thinking a correction in the gold price is in play, but it has pulled back a bit already in the last 2 weeks fairly quickly so a bit of a bounce wouldn't surprise and I'm only planning to hold these calls for a day or 2.

If the jobs number comes in high then I'd expect a near immediate break down, potentially below 1300 as the correction downtrend resumes and I'll get stopped out :(
 
Happy with my calls and I dumped them on the open today for a nice collect.

Gold price is at another key level in USD. Overhead resistance at 1350.

I'm not convinced the correction is over, though if it bounces off 1350 we might go into a flag formation - effectively a consolidation of sorts.
 
BuggedOut,

Thanks for sharing the predictions for the Gold movement.
is it the symbol FX:XAUUSD ?
 
BuggedOut said:
Happy with my calls and I dumped them on the open today for a nice collect.

Gold price is at another key level in USD. Overhead resistance at 1350.

I'm not convinced the correction is over, though if it bounces off 1350 we might go into a flag formation - effectively a consolidation of sorts.
Click to expand...

I dumped it on Monday, a bit too early hahaha
 
masmas said:
BuggedOut,

Thanks for sharing the predictions for the Gold movement.
is it the symbol FX:XAUUSD ?
Click to expand...

No, but I probably would have been better off with that one.

The company code for Newcrest is NCM. You can trade various options and warrants that are based on that code.
 
Lunardragon said:
BuggedOut said:
Happy with my calls and I dumped them on the open today for a nice collect.

Gold price is at another key level in USD. Overhead resistance at 1350.

I'm not convinced the correction is over, though if it bounces off 1350 we might go into a flag formation - effectively a consolidation of sorts.
Click to expand...

I dumped it on Monday, a bit too early hahaha
Click to expand...

I almost dumped Monday, and then I was kicking myself for not doing so yesterday.....

Tommorrow I will probably kick myself for not holding! :lol:

At the end of the day, the profit is what it is. It's not good to be greedy ;)
 
BuggedOut said:
Lunardragon said:
BuggedOut said:
Happy with my calls and I dumped them on the open today for a nice collect.

Gold price is at another key level in USD. Overhead resistance at 1350.

I'm not convinced the correction is over, though if it bounces off 1350 we might go into a flag formation - effectively a consolidation of sorts.
Click to expand...

I dumped it on Monday, a bit too early hahaha
Click to expand...

I almost dumped Monday, and then I was kicking myself for not doing so yesterday.....

Tommorrow I will probably kick myself for not holding! :lol:

At the end of the day, the profit is what it is. It's not good to be greedy ;)
Click to expand...


Haha very very true
Gotta share some to others too :)
 
Ill be honest with you the candlestick should warrant a follow through, but hey profit in the hand is worth 2 in the market
 
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