Gold Forecast October 19, 2012, Technical Analysis

Get Forex buy/sell signals directly to your email and by SMS.
To learn more click here

The gold markets fell during the session on Thursday as the “risk off” rally came back into vogue. Accelerating the very feeling on risk assets in general was a horrible report by Google as far as earnings are concerned. This really rocked the markets during the American hours more than anything else and as such accelerated already week risk appetite profile.

We do see quite a bit of support below here though, and as such are looking for a reason to buy the gold market. However, we recognize the fact that this fall could last a bit longer than we anticipate. This is why we actually prefer to build a core position in the GLD ETF, as it is not leveraged and lets us stay long of gold without all of the choppiness.

The $1720 level looks to be rather supportive, so we think between here and there, there is a good chance we would see supportive candles that would have us buying gold in a more leveraged fashion. This would include the futures market, as well as the CFD market where applicable.

We see a ton of support at various places, so selling just is not going to be an option. This is a simple matter of waiting to get your buy signal and capitalizing on it. $1700 is an obvious support level as well, and we would be hard-pressed to imagine that the gold market would fall below that. Nonetheless, if it does we would see the $1660 level as the next massive support area.

With the Federal Reserve and their printing currency, it’s hard to imagine that the gold markets will continue to rise. We think that over time the gold markets will certainly hit the $2000 level, and as such we are trading with that outcome expected. We are simply buying, and not selling under any circumstances. In fact, the thought of selling doesn’t even occur to us until were well below the $1500 level, which of course is far below where we are now. We will however, wait until we get a daily candle that looks supportive as this fall looks like it could have a little bit farther to go.

 

Gold Forecast October 19, 2012, Technical Analysis

Gold Forecast October 19, 2012, Technical Analysis

Want to read more articles like this one?
Enter your e-mail address and read FX Empire content directly from your inbox.
 
We value your privacy. Your e-mail address will not be shared.
About: FX Empire Analyst - Christopher Lewis

Christopher is a part of the FXEmpire.com analysis team. He writes Forex and Commodities technical analyses on daily and weekly basis. Christopher writes his analyses in a professional and yet simple to understand manner. His analyses are available in both text and videos.

  View all of FX Empire Analyst - Christopher Lewis's Articles    
Share Your Thoughts: Post a Comment


Your email address will not be published.