TECHNICAL STATE OF THE GOLD August 19 2014
Deepak SinghTwitter id: @smarket
Phase: THE GOLDEN PERIOD
Gold prices moved up 6x between August 2001 and August 2011.
Prices moved up from $270 to $1900
Phase: EVERYBODY LOVES GOLD
Gold after huge gains of 10 years consolidated gains for 20 months with
support at 1550. The level of 1550 touted as mouthwatering.
Does market reward overhyped dreams?
In Sep 2012: Gold dream was getting sold to investors
Phase: The crowded boat overturned
Market always surprises and just when everyone was dreaming of $5000 on Gold –
the Gold cracked below 1550 and saw a vertical fall to 1200.
Phase: Everyone confused on Gold
The dreamers have not given up but now the overhyped bullish talk has evaporated. Gold has settled between 1200 and 1400
Phase: HIBERNATION – Lots of Noise but no Action
Trapped in $100 range on daily chart. Gold has gone completely silent
WHAT NEXT FOR GOLD
www.stateofthemarket.net
What next for Gold prices?
When asset has broken down, then hoping for upturn is just HOPE
After 10 years of rally – there can be 10 years of no
action too
There can be more panic if Gold breaks down below
1200. Gold can then collapse to unimaginable
levels
Gold above levels of 1550 will indicate first sign of REAL TURNAROUND?
Watch out for Panic if there is breakdown below 1200 and some turnaround talk above 1550. Between this: It’s all talk and status quo
www.stateofthemarket.net
Thank You
• Disclaimer - The state of the market presentation is Deepak's perspective on the market. The presentation is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this presentation you agree to make no trade relying in whole or in part on the comments of the writers
• Chart Source: Chartalert.com
• If you have any question about the presentation: send me an email at [email protected] or tweet responses to @smarket
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