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Chart Review GOLD (XAUUSD) 17 Jul 2013

by Gav Leave a Comment

I always prefer to look at GOLD chart at the bigger time frame. It gives me a better picture. Let’s have a look at Spot GOLD (XAUUSD).

Here is the Daily chart of Spot GOLD (XAUUSD). It is trading slightly below 1300 area. My immediate upside target is around the 1337ish which is also the 61.8% Fib retracement with confluence of the upper band of daily channel and previous support turns resistance level.

GOLD D1 17Jul2013
17Jul2013

In the perfect scenario (which rarely happens..), I am looking at the resume of downtrend at the resistance zone mentioned above, and continue moving to complete the 1 to 1 projected movement (as shown in the green lines)

Let’s look into more detailed H4 chart.

A potential harmonic pattern is observed in H4. At the same resistance zone around 1337, as observed from Daily time frame, a bearish Gartley is forming. Although it is important to note 1300 will provide some pretty good support should GOLD break up from here.

GOLD H4 17Jul2013
GOLD H4 17Jul2013

 

That’s it, we have marked down some important levels to watch, and potentially do some businesses. Let’s “wait and see” now.

Filed Under: Harmonic setups, headline post, Trading Journal Tagged With: ABCD, Bearish Gartley, Gold

Technical view of Gold, and long term investment thoughts

by Gav 1 Comment

In addition to spot Gold and Silver trading, I have been looking at some long-term Gold investment possibilities. The idea is to apply long-term trend following approach by holding physical Gold (or Silver), while continue short-term speculative trading of these precious metals in spot or futures markets.

According to a report on Bloomberg, Gold price has slumped around 23 percent in the second quarter, the most since at least 2010. Have a look at the monthly chart of spot Gold, while I am not calling the bottom of Gold, a bullish harmonic pattern does seem to be forming now. Just bear in mind that this is a monthly chart, I am just trying to establish a long-term view here.

Gold monthly

During the uncertain times, in general, physical demand of Gold would increase. With my technical view mentioned above, this brings me to the thought of actually investing in some physical Gold. Traditionally, physical gold investments are always exclusive to sophisticated investors. It is very difficult for private individual to find a simple, safe and cost-effective way of buying, storing and selling gold or silver.

However, recently, I’ve come across Bullion Vault, which makes me reconsider about physical Gold or Silver investment.

Bullion Vault enables private individual from all over the world to own professional market gold and keep it in any quantity (investment amount can be as low as $100) in officially recognized bullion vaults in locations around the world.

Having research on the company, Bullion Vault provides a market place with lower dealing spreads comparing to traditional dealing price of gold coins and small bars. In addition to the market place, it also offers low-cost but secured storage options. Investors can choose their prefer storage locations in Zürich, London, New York or Singapore. Bullion Vault offers both Gold and Silver trading and storage facilities.

To me, it is worth spending time looking into this investment option.

 

 

Filed Under: headline post, investment

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