$Gold - Quick Indicator Interpretation (Long at $1304) $SPX $DOW
Hey team, hope this aids as we trade gold together!
I thought I would briefly provide my interpretation of various indicators I use for trading. If you see things differently please advise, I welcome contrarian logic - sway me!
Macro
TA
Final thoughts:
This sell off of Gold was very fast and way overdone - we can see here that it recently fell 2 Standard Deviations away from the 20 day mean!
The fact that fall happened so fast has me concerned that this buyback based off weak volume could reverse.
I am not trading Gold right now till we see it cross $1300. If it crosses $1304 I will immediately accumulate a large position, if the sell off continues I will continues to observe additional information prior to trading. There is a chance as well that we are in an Elliot Wave about to go through Corrective 4. I would chart scrape it, but putting in additional research on EW first!
Hey Final FYI: Long term (1yr) I am very bullish on Gold and still think we will see past $1400 this time next year.
I thought I would briefly provide my interpretation of various indicators I use for trading. If you see things differently please advise, I welcome contrarian logic - sway me!
Macro
- JP (Fed) continues QT - One would assume this would result in strengthening in the USD / DXY
- It flies in the face of Austrian Economics but QE has not resulted in higher inflation - in fact the Fed has an inflation problem
- If QE did not result in inflation perhaps QT will not result in a stronger greenback
- Two additional rate hikes later this year would certainly result in a stronger dollar
- Slowing growth globally (USA PMI/Brexit/China PMI/Australia slowdown) will result in other central banks seeking to purchase gold
TA
- Moving Averages on Weekly - Clearly Bullish
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- MACD - Neutral / Stoch - Buy
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- RSI - Bullish
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- Volume - just came off heavy selling, the volume is not strong into the Friday rally
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- 1 Month TF on Kagi makes you wonder if it will finally break out of this level of resistance (2002 till now)
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Final thoughts:
This sell off of Gold was very fast and way overdone - we can see here that it recently fell 2 Standard Deviations away from the 20 day mean!
The fact that fall happened so fast has me concerned that this buyback based off weak volume could reverse.
I am not trading Gold right now till we see it cross $1300. If it crosses $1304 I will immediately accumulate a large position, if the sell off continues I will continues to observe additional information prior to trading. There is a chance as well that we are in an Elliot Wave about to go through Corrective 4. I would chart scrape it, but putting in additional research on EW first!
Hey Final FYI: Long term (1yr) I am very bullish on Gold and still think we will see past $1400 this time next year.
Trade active:
Long at $1304
Trade closed: target reached:
1313.93 not bad. Time for some profit taking. Will look for reentry after additional TA this weekend.
