GOLD: Preparing for the Next Upswing
Gold has now given indications of strength for the Longer-Term Trend and, should continue it’s upwards movement in the coming week ahead.
It’s been a long, agonizing wait for the Gold Bulls, but, it appears that their time has come at last.
Don’t be confused by the sideways price movements of the last several weeks.
This can be thought of as a rest period for this market before launching upwards into new price territory.
This is normal behavior for commodities that are about to make significant price movements; the coiling of a spring is one analogy that we could use here to describe a highly probable event to come.
The last few days have positioned this market into a BUY Zone with today’s or Sunday’s prices probably being the lows from which higher prices will spring.
The GOLD Market can now justify buying on pullbacks.
This is not a fundamentals driven market as we’ve seen for some years now, so, we must work with the technical tools we have to best align our probabilities for success and to minimize our risks.
Price has weakened somewhat; enough to catch it’s breath, and, barring some new influx of selling (in a world desperate to buy Gold), prices should reassert themselves to the upside in the week ahead.
The price area from $1208-$1220 is a solid, lower-risk purchase area in anticipation for higher prices ahead.If prices drop below the $1208 area, then, a massive shift in trend to the downside will be implied. This is less likely now than before, however.
Readers should be aware that we called GOLD as going higher back in our January 28th article when it was still around $1100. Our analysis techniques detected the shift upwards much earlier though. Watch closely. – George