Gold-USD1145 in September http://mahis9.blogspot.in/search/label/Gold i have indicated that gold if moves below 100 month EMA it would trigger another bout of selling. Now gold has moved below the 100 month EMA which is very bearish for the gold. Gold has gone below it for the first time after december 2002 nearly 12 years so a huge bearish sign for the bulls in gold.So now comes the obvious question comes what would be the next target for gold. It would come to 50% retracement of the entire rise from year 2000 onwards which gives a target of 1082 which has to be closely watched if it is taken out then we can say that bulls would be decimated in gold as the next target is nearly 200 USD below at around USD 886. But we have to wait and watch at 1082 and then take a decision. we can expect a bounce from 1085 levels. So bears are active in gold as of now.

May All be peaceful and Happy

M.Mahiidar
Enjoying Life
Trend is Friend.

Gold in USD terms is an interesting one at this point of time. The above is the monthly chart of gold from the lows of 2001. Gold has broken below the trend line of 13 years( a fibonacci) which is a huge sign of weakness in gold and we can expect a healthy down fall in gold in coming weeks or months unless and other wise gold rises above trend line. The 100 month EMA is at 1173 which has been offering support to gold for last 15 months this time also in might offer the same but as this is the third attempt we can expect it to be taken out. Any break of same may prove to be catastrophe for gold as it has all possible chances of moving below USD1000 so we have to keep a close watch on the same. So brace for bear activity in Gold.

M.Mahiidar

Enjoying Life

Trend is Friend.

 

Has gold topped out. it appears to be so technically. it can be seen from the chart-i above which is of weekly time frame has broken the trend line from the low of 2008 i.e. nearly three years trend line. As the trend line is for long period the correction which started would be of longer time wise and price wise. You can also see in the second chart which is of daily chart it has formed a triangle and has broken down indicating that it might has topped out. the pattern is exactly similar to that formed in nifty in january 2008 where in nifty has broken down and you know what has happed there after. so we can expect a larget correction in gold probably towards 1000 levels. so be prepared for the same.