We now have a new Daily Buy Signal for Gold. We will remain bullish on Gold as long as Gold does not close below the lower chnel line, which is currently @ $1418.02. If Gold continues to move higher from here, the lower channel line will also move higher.
How high can Gold go at this time?
Looking at the following charts can give us a realistic expectation for the price of Gold over the next few weeks.
The Panic Zone chart is looking for a move up to $1600.
The Daily Fly Paper Chart shows us 2 things. Fly Paper Resistance currently starts around $1550 and is falling.
And it shows a downtrend line around $1562 and it is falling. The Fly Paper chart never gives us an exact number to work with, but a range of either potential Support, or in this case Resistance that we can work with.
The Moving Averages are also falling and tell us that traders will start to take profits from $1548 up to $1625 based on yesterdays price action. Again, just like the Flay Paper chart, it give us a range of potential Resistance. If Gold keeps moving higher, these Moving Averages will start to level off.
Also on this chart, we are plotting a realistic expectation based on recent price movement up to the $1575.
So far, we have looked at a range of price targets that are still moving and reacting to Gold's price movement..
The following price targets are locked in, and will not move anytime soon. In fact, we have had these price targets for several years now.
On our Daily Price Target chart, our first target is $1500. $1500 is both a daily and weekly target, and is one of those big round numbers that may provide a little bump in the road on the way up. And then I would look for a move up to $1562.50 which acted as support on the way down for several months. Anytime that I look at potentail price movement, I always look 2 lines up, so I think $1562.50 is a very realistic expectation.
I would go with our mathamatical target of $1562.50.
This target falls within the price range of the other charts.
Now it may have taken you several minutes to look over these charts.
It certanly took my evern longer to put this presenation together.
In reality, my total analysis time was around 15 seconds.
Any longer and you will start to develop a chart readers worsrt nightmare, analysis paralysis.
Could Gold move up to $2,000, or $3,000? Sure, but not from here. The chart patterns need to move from Bearish to Bullish. A series of lower highs and lower lows is Bearish. The first sign that the Gold market is turning Bullish, is when we start to see Higher Lows, and Higher Highs.