If this is the Gold Bottom, it’s Totally Random
- Posted by JC Parets
- on June 26th, 2013
When I look at the chart of gold, I ask myself like everyone else, “Is this the bottom?” And sure, no one knows for sure. But I’ll tell you this: if it is the bottom, it’s coming at a completely random level. So it’s not something I’d be betting on.
Here is a weekly bar chart of Gold futures. Look at the breakdown below this descending triangle that formed after the big April sell-off. The measured move of that pattern takes you lower. And the Fibonacci Retracements off the 2008 lows also take you lower.
So is this the bottom in precious metals? Possibly. But I really doubt it….
Those 1150s seem to be a logical area. We’ve seen support there in the past. And the measured moves from the recent triangle, as well as the big 2011-2013 topping pattern take you into that area. I personally would be much more interested down there.
Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.blog comments powered by Disqus
J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He is a 10-year veteran and Market Technician who actively manages money incorporating Technical Analysis and Behavioral Finance into his practice. JC’s work has been featured regularly on CNBC, Fox Business, Bloomberg, Business News Network, Wall Street Journal and Yahoo Finance among many other financial media outlets. More...
- The Chart The Whole World Is Watching
- Crude Oil To $70 In the Second Quarter?
- Fox Business: Social Media Stocks Break Out
- CNN Money MarketMadness Stock Challenge
- Social Media Stocks Are On Fire
- About That Outperformance From The Dow Jones Transportation Average
- Some Thoughts On The US Dollar
- Small-Caps Could Be Emerging As New Leaders
- Taking The Time And Avoiding Shortcuts
- Is Twitter Stock About to Break Out?
Archive by Year