Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Closing Report: Gold Holds Steady While Stocks Drop 2% More
By: Chris Mullen, Gold Seeker Report

Another Great Oxymoron: "LBMA Transparency"
By: Craig Hemke

Ira Epstein's Metals Video 11 20 2018
By: Ira Epstein

Trigger Time For Gold Stocks
By: Stewart Thomson

Chilton says CFTC found much evidence of silver rigging; Schiff calls rigging 'rumor'
By: Chris Powell

Unthinkable!
By: Gary Christenson

Powell and Gold between Inflation and Global Slowdown
By: Arkadiusz Sieron

Freezing Temperatures Could Heat Up Natural Gas Prices
By: Frank Holmes

Stocks are Now in ‘Complete Bitcoin Territory,’ Asset Manager Says
By: GoldCore

Asian Metals Market Update: Nov 20 2018
By: Chintan Karnani, Insignia Consultants

 
Search

GoldSeek Web

 
Gold Report for Wednesday, Feb 7, 2018


 -- Published: Wednesday, 7 February 2018 | Print  | Disqus 

Commentary

By Ira Epstein

Current events have injected financial markets with a solid does of volatility. Wage inflation showed up in the latest US Jobs Data numbers both here and in Germany. Japan continues to languish.  Stock indices ended a vertical move to the upside, that began on January 1st and ended on January 29th.

As you know gold soared at year end along with stock indices. Gold was at 1236.5 the week of December 15 and topped out the week of January 26th at 1365.4. Yes, that was a rally of approximately $129. Keep in mind that stock indices, energies and a host of other markets were in vertical rallies into the end of January. We’re now about $45 off January’s peak.

What does this mean?

To answer this, I think we first look at the PriceCounts. I have made a chart below to show you how they’re setup now. (We have a series of PDFs and videos to help you learn how to do these on your own. Our QT charting software contains the study) PriceCounts in and off themselves are not a trading tool. What they do is after a chart setup takes place, provide you with a “measure” of where prices might be headed. The PriceCount has 5 potential objectives. Hitting the first objective has the higher probability. Each one after the first has less and less probability of being hit. The first 3 are the ones most commonly hit.

Let’s look at April Gold with its set of PriceCounts

http://www.goldseek.com/news/2018/2-7ie/image002.jpg

The 1st Downside PriceCount come in at 1309.2. In front of that is support of the Lower Bollinger Band, at 1321.5. I have a syllabus on the top left of this chart. Prices today and yesterday went down to challenge the lower Bollinger, where support showed up.

The “red” line on the chart is the 18-Day Moving Average of Closes. On rallies expect this number to offer resistance.

Daily Chart with Swinglines, Bollinger Bands and Slow Stochastics

http://www.goldseek.com/news/2018/2-7ie/image004.jpg

As you can see, the market as measured on the bottom graph where the Momentum Oscillator, the Slow Stochastic Study, is now oversold. Oversold is commonly defined as one of the two lines that makeup this oscillator being under at 20 reading. Oversold either converts to becoming more bearish, or Embedded as I call it when both of the Slow Stochastic lines close under the 20 reading for 3 or more consecutive days. So far that is not occurring, which means this market is oversold. If the lines don’t embed, that will be due to prices reversing higher.

Weekly Gold Chart

http://www.goldseek.com/news/2018/2-7ie/image006.jpg

Look at the setup from 1123.9 to 1218.9. Look at the setup from 1123.9 to 1218.9. That formation created an upside PriceCount that culminated at the 2nd PriceCount, against the Upper Bollinger Band. The 3rd PriceCount is still an open target, but as explained above after the 1st PriceCount is hit each after that has a lesser probability of being hit. The 1460 is still a possibility.

Summation

Economic data, across the world is strong. The US Fed is on schedule to raise interest rates 3 times this year. Fear that the Fed will get ahead of itself and slow down the US economy was seen this week. It was a major force in all the volatility we’ve seen this week. Last week’s job in US wage inflation spooked the markets.

The question is whether gold will respond to inflation. My answer is that it already has and will continue to do so. Going up $129 in a matter of weeks and getting a pullback of 1/3 of that amount is not unusual. Nor would a bit more of a pullback, so 50% over or a $60 break do longer term damage to the weekly Chart.

On the Daily Chart, the 1st PriceCount of 1309.2 is an open count. If hit, it would put prices under the Lower Bollinger and keep the market in oversold territory.

Getting over 1365 in April Gold puts the market over a double top, and open the possibility of getting up to the 3rd PriceCount.

Right now, the trend is down, oversold, and but working prices lower. Look for support near 1296. If hit, I will issue an update.

https://www.iraepstein.com/

DISCLAIMER: THIS IS A SOLICITATION. Reproduction or rebroadcast of any portion of this information is strictly prohibited without written permission.

The information reflected herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. In an effort to combat misleading information Linn & Associates, LLC. has performed its due diligence to ensure that all material information is provided within this report, though specific information related to your investment, hedging or speculative situation may not be included. Opinions expressed are subject to change without notice. This company and its officers, directors, employees and affiliates may take positions for their own accounts in contracts referred to herein. Trading futures involves risk of loss. Past performance is not indicative of future results.

Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades may have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.   

 

Privacy Policy

 


| Digg This Article
 -- Published: Wednesday, 7 February 2018 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2018



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.