Is now the time to buy gold?
22nd November 2018 08:48
by Alistair Strang from Trends and Targets
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The yellow metal is up on dollar weakness and global events, but there are catalysts for further gains. Chartist Alistair Strang spells out the key scenarios.
Gold $ thoughts
The return of TV's excellent 'The Curse of Oak Island' documentary reminded it has been a few months since we looked at gold and finally, some good news appears possible.
As the blue line on the chart illustrates, the price surged above the trend, finally removing itself from the potential of serious drops.
Of course, there's a "but"...
Despite removing itself from an immediate region promising a bottom at $1,120 or perhaps lower at $1,025, the metal has conspicuously failed to recover in price.
Our thinking previously suggested should the product recover above $1,230, we would anticipate a cycle commencing to $1,260. While perhaps it's a timeframe thing, we're fairly uncomfortable the highest achieved thus far has been $1,244 before a sharp fall occurred. We've not entirely lost hope though.
At present, the price of gold need only exceed $1,238 to convince us of movement to a near-term $1,242.5. If bettered, our secondary now calculates at $1,268.
The other side of the coin comes, if the commodity finds an excuse to close a session below $1,203. This risks being a pretty poor show, making a visit to $1,186 viable initially. If broken, secondary is at $1,140 and ideally, a trampoline bottom.
Source: Trends and Targets Past performance is not a guide to future performance
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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