Recent Daily Gold Action with Fibonacci Fan and Retracement Grid

January 16th, 2008

WARNING: This is not a recommendation to buy, sell or hold any financial instrument.

The move on gold has been so extreme for so long that I thought I’d take a look at it from a technical perspective. Since we’re above the previous all time high of $850 (yes, I know that the dollar is worth less now than in 1980), and the usual indicators aren’t reliable in these extended overbought / high momentum times, I drew a Fibonacci fan and retracement grid on the recent daily gold chart to try to get an idea of where some near term supports might be.


Recent Daily Gold Action with Fibonacci Fan and Retracement Grid

Guys, it’s so whacked out. I don’t even see a decent dip yet for a buying opportunity. (Even though I bought a gram on some short interval oversold stochastics.) Bears have a bit of traction on intraday charts, but that’s it so far. To look at the idiot press, they make it seem like the price is crashing. HAHA. Well, those PSYOP efforts aren’t working well so far to drive it down.

There was a notable failure to retake $900 on the upside, intraday, but the downside is contained at around $888 so far.

If it can manage to breakdown below $888, look for support around the first fib fan line. Beyond that, $865 for the first retracement. $850… That’s the king daddy support of them all so far. That better hold. (Ben, you better cut. Do ya hear me?) I like stochastic crosses around those levels. Your results may vary. Batteries not included.

Again, I’m not trading gold, I’m accumulating it.

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2 Responses to “Recent Daily Gold Action with Fibonacci Fan and Retracement Grid”

  1. dagobaz says:
    January 16, 2008 at 1:08 pm

    Hi K:

    from the yg #f contract: (emini futs) for accumulation:

    875 support as first: probability of reversal there is 74%

    843.7 second: probability of reversal there is 91%

    both of these reversal pivots should retest the high of 916, then retrc to 890 or so, then go higher: t1 for the new high is 968.7

    as always, caveat lector.

    🙂

  2. Brad says:
    January 16, 2008 at 11:12 pm

    It seems everyone’s expecting at least a 50 bp cut, possibly 75 bps. How much of that’s priced into the stock and gold markets?

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