Breaking News

Another Visit To The Gold Stall

By Dragonfly Capital (Gregory W. Harmon)CommoditiesMay 19, 2017 10:34AM ET
Another Visit To The Gold Stall
By Dragonfly Capital (Gregory W. Harmon)   |  May 19, 2017 10:34AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Gold has been a fickle metal to find a price for over the last 5 months. Ever since the minor stall near 1220 in January, it has bounced around a lot. First down to its 20-day SMA then a move higher, stalling in the 1245 to 1260 zone. Another drop down to 1200 found support at the round number and reversed. It stalled again in the 1245 to 1260 zone. Then a move higher failed and it fell back again to a higher low.

Now gold has reversed off of that low and is back at the 1245 to 1260 stall zone. It has spent two days in this range so far and is trading within the range as I write Friday morning. Will it stall again? What is with this range? Is it magic? Looking at the 1-year chart of gold prices suggests there is some magic about this range. It also stopped the price of gold in October and June, and despite the strong shift lower in November, notice the single-day dip into the range and bounce before dropping the next day.

Gold Daily
Gold Daily

Six times the price of gold has hit this range and stalled or reversed. Which will it be this time, a reversal or continuation? Momentum has been trending higher suggesting continuation. And the price is holding over the 20-day SMA. There is room within the squeezing Bollinger Bands® to about 1290 above. these suggest a break will be to the upside. That may or may not happen. But what is more certain is that it is better to what for a break of this 1245 to 1260 stall zone to place your bet.

Another Visit To The Gold Stall
Another Visit To The Gold Stall

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Seqenenre Tao
Seqenenre Tao May 19, 2017 4:01PM GMT
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Magic, yep. Lol, nicely done :)
0 0
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email