Monday, September 6, 2010

Gold Technical Analysis Sept, 4, 2010

Here is the chart of the World Gold Index (XGLD) since June of this year with a closing price of $1249.80 on Sept 4th, 2010.    (Click on the chart for a larger view)

  • Gold has made higher highs and higher lows since the July 28th low at $1155. Bullish
  • The price is above the three moving averages of 15, 50 and 100. Bullish
  • The 18 dma crossed over the 100 dma on 8/16/10. (Indicated with a white arrow) Bullish
  • The 18 dma crossed over the 50 dma on  8/23/10.  (Indicated with a white arrow) Bullish
  • The 15 day moving average is above the 50. The 50 day moving average is above the 100. Bullish 
  • The MACD Histogram is above the center line. (Crossover on 8/4/10) Bullish
  • Both Stochastics K and D lines are above the 80 level and are 'embedded'. (Green Arrow) Bullish
We are in the first week of September and the bullish seasonal trend seems to be continuing with Gold. Even through Friday was a down day, the price is still above the last break low of $1232.40.  Slow Stochastics are still 'embedded' or 'locked in', pullbacks in Gold can present a buying opportunity. Gold's all time high was produced on June 21st at $1266.50 and at it's current price, it is only 16.70 away from reaching that level.  With this trend continuing, Gold should have a new high produced within the near future.

 Above is a chart of last years (2009) bull run from Sept 2nd $952 to Dec 2nd $1217. It is speculated that fund managers want to lock in their profits and sold their Gold related assets in December. Why?  Because they publish their profit percentage the next year and want to show maximum profits for their fund.  Will it happen again this year?  Nothing is certain except for death and taxes, but on every pullback since 2002, Gold has come back and has reached new highs.

No comments:

Post a Comment