Google+
Chartwhiz Daily Gold Report
By Jeremy Ascher   
October 15, 2010

Technical Outlook:

Dec Gold: Gold prices continue to post new record highs with Thursday’s move stretching to 13881 before pulling in to close at 13776 on the day. This market is a runaway train right now and it’s tough to step in front of it on the short side, however, daily charts are beginning to send out warnings. Thursday’s session ended with the formation of a ‘Shooting Star’ candlestick, a potentially bearish signal. In addition, the RSI has been running overbought and now showing negative divergence in a similar pattern seen in Nov. 2009 that resulted in a violent $150 correction.

We are not suggesting going short, but the thinking is to lighten long positions or buy some protection, possibly puts. All that being said, we still need to see confirmation, starting with a settlement below 13700 on the week that would indicate the beginning of a peaking turnover. If the 13881 record high is violated, anticipate a run at 14000 while still remaining cautious with the overbought RSI.

Today’s bias is Flat to Lower based on the ‘shooting star’ pattern with scalping opportunities on both sides. Sellers can look to scalp against the 13790 Pivot and the 13830 X Resistance zone with a target at 13711-13700 XX Support if 13757 is penetrated. A drop below 13700 accelerates selling today targeting XXX Support at 13660-13650.

Daily Gold Chart:

10/15/10
Click on image to enlarge!

Daily Gold Compressed Chart:

10/15/10
Click on image to enlarge!

For more from Jeremy, visit www.chartwhiz.com and register for a 1-month free trial to follow his daily and intra-day commentaries.

 

Trader Kingdom Free E-Newsletter

Stay in touch with the latest news on free events and market updates from industry experts!



 

Get Adobe Flash player
This website is for educational and informational purposes only and should not be considered a solicitation to buy or sell a futures contract or make any other type of investment decision. The companies and services listed on this website are not to be considered a recommendation and it is the reader's responsibility to evaluate any product, service, or company. NinjaTrader Ecosystem LLC is not responsible for the accuracy or content of any product, service or company linked to on this website.

Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. View Full Risk Disclosure.

CFTC Rules 4.41 - Hypothetical or Simulated performance results have certain limitations, unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.

Readers agree to Trader Kingdom’s Disclaimer, Terms of Use and Privacy Policy. Offers and events from 3rd party vendors are provided for convenience only. Trader Kingdom is not responsible for the content of a 3rd party website or their services.