Join        Login             Stock Quote

Gold–Breakdown Or Building A Base?

 February 12, 2013 04:44 PM

In its correction since October gold has been confined in a symmetrical triangle formation. The direction of its break out of such patterns usually determines its next direction for awhile.

At our sell signal we gave our initial downside target as 1,650 an ounce. Gold has come down to that level four times now. It bounced off the first three times, but its rally attempts each time continued to fail at either the 30-day m.a., or the upper limit of the triangle.

[Related -Buck The Crowd With These Gold ETFs]

Each time it became closer to the tip of the triangle where it would have to break out one way or the other.

It potentially broke out of the triangle to the downside yesterday. But did it? The jury is still out. It could still potentially be just building a base at the 1,650 area.

Not all global markets are moving in  tandem anymore, at least short-term.

Global markets have a very strong history of moving in tandem with each other. That is particularly true regarding annual seasonality, as shown in several independent academic studies. This is a link to more info on that: Market's Seasonal Patterns in Global Markets!

And so it has been that most global markets pulled back along with the U.S. market from October into mid-November, but have been in significant favorable season rallies since.

[Related -Gold: The Ultimate Store of Value?]

Most also became short-term overbought above short-term 21-day and 50-day moving averages along with the U.S. market.

But now it's become a mixed picture, with some global markets continuing on to higher highs while others have begun to pull back from the overbought conditions. For some the first potential support at 21-day moving averages did not hold.

And for still others the potential support at 50-day m.a.'s has not held either. They include some important economies and markets like:


iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageGermany Is On The Rebound - Time To Buy?

Based on this year's 17% spike in the Stoxx Europe 600 Index, it seems investors have found a home in read on...

article imageIs Drought Risk In The American West An Economic Threat?

The historic and ongoing drought in California is getting harder to ignore in terms of its potential impact read on...

article imageFunds Behaving Badly

Discipline is still the key to read on...

article imageGenuine Parts Co. (GPC): This Company's Raised Dividends For 59 Years

There are 253 million cars and trucks driving along U.S. roads. And the average age of those automobiles is read on...

Popular Articles

Daily Sector Scan
Partner Center

Related Articles:

Why Gold Is Undervalued
More Articles on: Finance

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.