As i predicted the gold rally at the end of year 2016,i was waiting that correction from gold..A lot happened to force gold retrace.First of all we had the mental barrier of DOW reaching at last 20,000,which is showing that the stock rally is still in progress.Second we had the lack of demand from China because of the chinese new year's eve.Third the dollar seems to try to keep it's momentum despite Trump's 'opinion' about strong dollar so we will continue to have money flow from other assets to stocks mainly.
In my personal opinion year 2017 is a mirror of year 2016 with an interesting difference,meaning that:
2016
At the year 2016 gold surged from 1050 area to 1280 area for the first months,after it consolidated between 1200-1280area and at the mid-year after touching 1200 again it reached new year high 1370 usd per ounce.After that it started it's way down to 1120 area..
2017
We started the same way we started 2016 altough the retracement wasn't so dip like the 2015's dip.I believe this year gold will break the 2016 highs because a lot of reasons...
First,we have what we call market geometry we can see that the rally early of the year is around 22% form 1040 to 1280,if we clone the orange line and put it at nowdays rally it reaches 2016 highs 1375.
Second the 2017 gold rally isn't so vigorous compare to 2016 but that's a good thing as the market has the time to 'digest' the move since the begining of 2017 and 'refuel' to continue it's upside move.
Third we didn't have the Trump uncertainity that will trigger more gold demand through the year.
Fourth we didn't have the Dow in new highs with a bubble danger coming closer as the fundamentals don't follow his way up.So as the time is passing by even more buyers will appear foe hedging even the stock maret continue in new highs.
Fith even if FED do raise the interest rates twice or three times at the percentage they declared won't cover a stock market crash or the 'Trump uncertainity' ..
CHART INFORMATION
AT THE CHART YOU CAN SEE SOME POSSIBLE PRICE-CONSOLIDATION AREAS BASED AT FIB RETRACEMENTS-EXTENSIONS(RED AREAS TARGET TO BUY-- GREEN AREAS POSSIBLE TARGET ZONES) AND SOME RESISTANCE LVLS BASED ON HUGE VOLUMES(RED=SUPPORT LVL, YELLOW CRITICAL SP/RES LVL,GREEN=RESISTANCE LVL)
CONCLUSION
I AM LONG AT GOLD LONGTERM
BUY AT THE FIRST RED ZONE 1165-1177 FOR MORE OFFENSIVE INVESTORS AND AT THE SECOND ZONE 1200-1210 FOR MORE DEFENSIVE INVESTORS ABOVE 1200 CRITICAL LVL
FIRST TARGET ZONE TO 1225-1240 FOR SHORTERM TRADERS AND SECOND TARGET ZONE ABOVE 1276 LVL LASTLY FOR MORE OFFENSIVE INVESTORS LONGTERM GREEN ZONE 1335-1360(OR 1375+!)
EASE YOUR POSITION IF GOLD CONSOLIDATE UNDER 1165 FOR MORE THAN 2 WEEKS AND EXIT YOUR TRADE UNDER 1150 LVL
In my personal opinion year 2017 is a mirror of year 2016 with an interesting difference,meaning that:
2016
At the year 2016 gold surged from 1050 area to 1280 area for the first months,after it consolidated between 1200-1280area and at the mid-year after touching 1200 again it reached new year high 1370 usd per ounce.After that it started it's way down to 1120 area..
2017
We started the same way we started 2016 altough the retracement wasn't so dip like the 2015's dip.I believe this year gold will break the 2016 highs because a lot of reasons...
First,we have what we call market geometry we can see that the rally early of the year is around 22% form 1040 to 1280,if we clone the orange line and put it at nowdays rally it reaches 2016 highs 1375.
Second the 2017 gold rally isn't so vigorous compare to 2016 but that's a good thing as the market has the time to 'digest' the move since the begining of 2017 and 'refuel' to continue it's upside move.
Third we didn't have the Trump uncertainity that will trigger more gold demand through the year.
Fourth we didn't have the Dow in new highs with a bubble danger coming closer as the fundamentals don't follow his way up.So as the time is passing by even more buyers will appear foe hedging even the stock maret continue in new highs.
Fith even if FED do raise the interest rates twice or three times at the percentage they declared won't cover a stock market crash or the 'Trump uncertainity' ..
CHART INFORMATION
AT THE CHART YOU CAN SEE SOME POSSIBLE PRICE-CONSOLIDATION AREAS BASED AT FIB RETRACEMENTS-EXTENSIONS(RED AREAS TARGET TO BUY-- GREEN AREAS POSSIBLE TARGET ZONES) AND SOME RESISTANCE LVLS BASED ON HUGE VOLUMES(RED=SUPPORT LVL, YELLOW CRITICAL SP/RES LVL,GREEN=RESISTANCE LVL)
CONCLUSION
I AM LONG AT GOLD LONGTERM
BUY AT THE FIRST RED ZONE 1165-1177 FOR MORE OFFENSIVE INVESTORS AND AT THE SECOND ZONE 1200-1210 FOR MORE DEFENSIVE INVESTORS ABOVE 1200 CRITICAL LVL
FIRST TARGET ZONE TO 1225-1240 FOR SHORTERM TRADERS AND SECOND TARGET ZONE ABOVE 1276 LVL LASTLY FOR MORE OFFENSIVE INVESTORS LONGTERM GREEN ZONE 1335-1360(OR 1375+!)
EASE YOUR POSITION IF GOLD CONSOLIDATE UNDER 1165 FOR MORE THAN 2 WEEKS AND EXIT YOUR TRADE UNDER 1150 LVL
