Gold broke another important support level overnight and an intermediate cycle projection fell to below the next support level.
Technical indicators and screening measures were positive again Thursday while the market averages treaded water. There are lots of technical positives, but also some flies in the ointment.
Gold has broken a significant support level, and intermediate indicators have turned down. But major support looms just below current levels and one intermediate cycle projection has been hit.
Technical indicators could be aligned for a powerful and extended move up in the wake of the Fed baby taper. The fix was clearly in as the dealers sat on the massive pile of cash the Fed injected into their accounts since last Wednesday’s huge Fed MBS purchase settlement. While the rest of the world…
The market has come to the eve of Fed Taper or Not Day, poised to do just about anything. 6 month cycle indicators are on the cusp of sell signals. 13 week and shorter term indicators are on the verge of buy signals. The 6 month cycle projection keeps edging higher.
Gold is positioned for anything on the FOMC announcement but the greater risk technically is to the downside.
What if the Fed tapers and, contrary to conventional wisdom, the players buy the news. Indeed, liquidity wise this appears to be an opportune time for the Fed to taper as Treasury supply pressure will be non existent in January. At the same time dealers have been building a huge cash pile apparently in anticipation…
15 month cycle momentum has moved off the signal line but that cycle has been in an up phase since July and has made no progress.
The market stopped and turned on the dime it had to “or else” on Monday, rallying after a two day test of major support amidst mixed technical signals.
Gold continues to hold at major support, with some hopeful signs but others that warn of more danger.