A Critical Few Weeks for Gold

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A Critical Few Weeks for Gold

The following information arrived on my desk from a well respected source:

“Gold and silver turned in another poor monthly performance with losses of 4.5% and 4% respectively.  Investors are wary of getting long the metals thanks to strong US economic data and lack of inflation.  However, it’s important to point out that both metals are trading at price levels that make it very hard for miners to stay in business.”

But let’s look at Hawkeye Gold.

Chart 1 – Gold Monthly

gold monthly

The Gold Monthly Chart is in a down trend bias but in congestion.

Chart 2 – Gold Weekly

gold weekly

On the Gold Weekly Chart we are at a critical point. The price is hitting against the weekly stops which act as a support (indicated by the red arrow). Remember what W.D.Gann said – price usually goes through support resistance at the 4th attempt, if it does not hold it will be the commencement of weekly down trend.

Chart 3 – Gold Daily

gold daily

The Gold Daily Chart is in a down trend. However, there are narrow bars on declining volume (indicated by the red arrow). This is usually the first sign of congestion and accumulation prior to a new up trend.

[Please note the red arrows are for illustration only and are not part of the software]

Hawkeye Perspective

We are at the crossroads here. The Gold price needs to hold on the Weekly Chart, and then you will see the Hawkeye Volume indicator start showing some green volume bars as the majors start accumulating Gold at these low prices, before the trend runs up. But wait – Hawkeye will show where the smart money is.

2 Replies to “A Critical Few Weeks for Gold”

  1. Brilliant! As Nigel always says, know the six ways a market moves, and then you can have an intelligent conversation with it. Your trading decision will not be based on emotion or what you think, but rather on what the data is telling you is actually happening. Your software has given me confidence, discipline,patience, and the ability to focus like I’ve never known, and I’ve been trading for over 25 years! GREAT work!