{"id":7498,"date":"2013-04-18T03:03:18","date_gmt":"2013-04-18T07:03:18","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=7498"},"modified":"2013-04-18T03:03:18","modified_gmt":"2013-04-18T07:03:18","slug":"gold-will-it-bounce","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2013\/04\/18\/gold-will-it-bounce\/","title":{"rendered":"Gold: Will it bounce?"},"content":{"rendered":"<p>&#8220;Never try to catch a falling safe&#8221; warn the pundits &#8230;. &#8220;Wait for it to bounce.&#8221;<\/p>\n<p>So far we have not seen much bounce. After finding short-term support at $1320 on the 2-hourly chart, gold rallied to $1400 before retreating to test $1360. The long tail at $1360 indicates buying pressure and we should see another test of $1400. Breakout would indicate a rally to $1440*, but bear market rallies are notoriously unreliable and prudent traders are likely to avoid. Reversal below $1360 is likely and would warn of another down-swing.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" alt=\"Spot Gold\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-04-18-gold-2h.png?w=525&#038;ssl=1\" \/><\/p>\n<p class=\"target\">* Target calculation: 1400 + ( 1400 &#8211; 1360 ) = 1440<\/p>\n<p>On the monthly chart we can see that $1300* is the obvious support level, but the severity of the fall indicates this is a bear market and will take time to recover. Breach of $1300 would signal another decline, with the next major support level at the 2008 high of $1000.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" alt=\"Spot Gold\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-04-18-gold-m.png?w=525&#038;ssl=1\" \/><\/p>\n<p class=\"target\">* Target calculation: 1550 &#8211; ( 1800 &#8211; 1550 ) = 1300<\/p>\n<p>I am still bullish on gold in the long-term. We face a decade of easy monetary policy from central banks, with competing devaluations as each nation struggles to recover at the expense of the other. I would recommend this <a title=\"WSJ Money Beat\" href=\"http:\/\/blogs.wsj.com\/moneybeat\/2013\/04\/16\/pimcos-el-erian-markets-trading-at-very-artificial-levels\/\" target=\"_blank\">WSJ interview with PIMCO CEO Mohamed El-Erian<\/a> for its realistic long-term outlook.<\/p>\n<h3>Dollar Index<\/h3>\n<p>There has been no major strengthening of the Dollar, which one would expect if gold fell because of downward revision of the market&#8217;s&nbsp; inflation outlook. Breakout above resistance at 84.00 would signal an advance to 89.00\/90.00, but there is still much work to be done.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" alt=\"Dollar Index\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-04-18-dxy.png?w=525&#038;ssl=1\" \/><\/p>\n<h3>Crude Oil<\/h3>\n<p>Crude oil prices fell sharply, signaling a primary down-trend. Interestingly, Brent Crude broke its primary support level at $106\/barrel on April 8th, 4 days ahead of gold. Nymex WTI followed the next week and will soon be testing support at $84\/barrel. Falling crude prices are a healthy long-term sign for the economy, but indicate medium-term weakness with weak demand anticipated in the year ahead.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" alt=\"Brent Crude and Nymex Crude\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-04-18-crude.png?w=525&#038;ssl=1\" \/><\/p>\n<h3>Commodities<\/h3>\n<p>Dow Jones-UBS Commodity Index fell sharply in response to gold and oil. Divergence from the S&amp;P 500 looks even more extreme and stock prices are likely to fall.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" alt=\"Commodities\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-04-18-dubs.png?w=525&#038;ssl=1\" \/><\/p>\n<p>Slowing growth in China &#8212; the major driver of global commodity prices in recent years &#8212; is part of the problem, but aggressive action by Japan is also destabilizing global markets.<\/p>\n<p><img data-recalc-dims=\"1\" decoding=\"async\" class=\"aligncenter\" alt=\"Commodities\" src=\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-04-18-dubs-china.png?w=525&#038;ssl=1\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Never try to catch a falling safe&#8221; warn the pundits &#8230;. &#8220;Wait for it to bounce.&#8221; So far we have not seen much bounce. After finding short-term support at $1320 on the 2-hourly chart, gold rallied to $1400 before retreating to test $1360. The long tail at $1360 indicates buying pressure and we should see &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2013\/04\/18\/gold-will-it-bounce\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Gold: Will it bounce?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,35],"tags":[810,1073,1127,1779,2529,3204],"class_list":["post-7498","post","type-post","status-publish","format-standard","hentry","category-gold-commodities","category-us-dollar-index","tag-continuous-commodity-index","tag-dollar-index","tag-dow-jones-ubs-commodity-index","tag-ice-brent-crude","tag-nymex-wti-light-crude","tag-spot-gold"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Gold: Will it bounce? - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Gold: Will it bounce? - the patient investor\" \/>\n<meta property=\"og:description\" content=\"&#8220;Never try to catch a falling safe&#8221; warn the pundits &#8230;. &#8220;Wait for it to bounce.&#8221; So far we have not seen much bounce. After finding short-term support at $1320 on the 2-hourly chart, gold rallied to $1400 before retreating to test $1360. 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Failure of support would visit the primary level at $1200\/ounce, while respect would test $1440. Breach of the downward trend channel indicates the primary trend is slowing, but recovery above $1440, and a primary up-trend, seem some way off \u2014 as does\u2026","rel":"","context":"In &quot;Commodities&quot;","block_context":{"text":"Commodities","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/commodities-gold-commodities\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8183,"url":"https:\/\/thepatientinvestor.com\/index.php\/2013\/07\/31\/gold-consolidates-as-dollar-and-commodities-fall\/","url_meta":{"origin":7498,"position":1},"title":"Gold consolidates as dollar and commodities fall","author":"ColinTwiggs","date":"July 31, 2013","format":false,"excerpt":"Gold is consolidating in a narrow range between $1300 and $1350\/ounce. Penetration of the descending trendline indicates that a bottom is forming. Reversal below $1300 would suggest another test of primary support at $1200, but breakout above $1350 is as likely and would target $1400. A rally to $1400 would\u2026","rel":"","context":"In &quot;Commodities&quot;","block_context":{"text":"Commodities","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/commodities-gold-commodities\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7901,"url":"https:\/\/thepatientinvestor.com\/index.php\/2013\/06\/12\/gold-and-dollar-fall\/","url_meta":{"origin":7498,"position":2},"title":"Gold and Dollar fall","author":"ColinTwiggs","date":"June 12, 2013","format":false,"excerpt":"Gold retreated below support at $1400, indicating the end of the bear rally. Expect a test of primary support at $1320\/$1340. Yesterday's long tail is evidence of short-term buying pressure, so breach of primary support is not a certainty. Respect would suggest another test of $1400. * Target calculation: 1350\u2026","rel":"","context":"In &quot;China &amp; HK&quot;","block_context":{"text":"China &amp; HK","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/china-hk\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7729,"url":"https:\/\/thepatientinvestor.com\/index.php\/2013\/05\/09\/gold-rally-falters-while-bond-yields-rise\/","url_meta":{"origin":7498,"position":3},"title":"Gold rally falters, while bond yields rise","author":"ColinTwiggs","date":"May 9, 2013","format":false,"excerpt":"Gold's bear rally has run out of steam, with continued tests of support at $1440\/$1450. Breach would penetrate the rising trendline, indicating another test of primary support at $1320. Target for the decline would be $1200*. Breakout above $1500 is unlikely, but would test $1550.* Target calculation: 1350 - (\u2026","rel":"","context":"In &quot;China &amp; HK&quot;","block_context":{"text":"China &amp; HK","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/china-hk\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8133,"url":"https:\/\/thepatientinvestor.com\/index.php\/2013\/07\/18\/crude-rallies-while-gold-and-commodities-stall\/","url_meta":{"origin":7498,"position":4},"title":"Crude rallies while gold and commodities stall","author":"ColinTwiggs","date":"July 18, 2013","format":false,"excerpt":"Gold is consolidating in a narrow range below resistance at $1300 -- a bullish sign. Upward breakout would penetrate the descending trendline, suggesting a bottom is forming.\u00a0 Reversal below $1270, however, would indicate another test of $1200. Failure of support at $1200 would offer a medium-term target of $1100*. *\u2026","rel":"","context":"In &quot;Commodities&quot;","block_context":{"text":"Commodities","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/commodities-gold-commodities\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8160,"url":"https:\/\/thepatientinvestor.com\/index.php\/2013\/07\/24\/gold-rises-as-the-dollar-falls\/","url_meta":{"origin":7498,"position":5},"title":"Gold rises as the dollar falls","author":"ColinTwiggs","date":"July 24, 2013","format":false,"excerpt":"Gold broke resistance at $1300\/ounce, penetration of the descending trendline indicating that a bottom is forming. Reversal below $1300 would suggest another test of primary support at $1200. Respect of support at $1300 and breakout above $1350 is unlikely, but would target $1400. Dollar Index The Dollar Index is headed\u2026","rel":"","context":"In &quot;Commodities&quot;","block_context":{"text":"Commodities","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/gold-commodities\/commodities-gold-commodities\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/7498","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=7498"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/7498\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=7498"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=7498"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=7498"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}