Gold: 22 December 2013, Sunday, 11.50pm Singapore Time
Attached above is the weekly chart of Gold.
This is a follow-up of all previous Gold analyses with Track Records.
This is a follow-up of all previous Gold analyses with Track Records.
Above in the chart are the THREE RED CIRCLES where I called for Shorts on Gold in year 2012.
Above in the chart are also the TWO GREEN CIRCLES where I call for Longs/Buy on Gold in 2013.
With a weekly low of $1186.00 and a close of $1202.60, Gold is at a critical long term support (RED TREND LINES ABOVE) where I added my buys.
Such a support is not to be easily broken in a mere 1-2 recent attempts. Furthermore, as explained earlier this year, Fair Price of Gold is $1300 for year 2013.
At the current price of $1202, Gold is under-valued based on current existing market conditions. Under-priced value remains $1200-$1300 for year 2014.
From current support, due to all the conditions as highlighted above, Gold is expected to rebound with a high upside to $1550 as first target and $1750 as an overshot second target.
Downside is low (low stop-loss) just below the RED TRENDLINE SUPPORTS and upside is high, making the reward-risk ratio excellent as a trading opportunity as well as an investment opportunity.
Note in addition that there is also the likelihood that international hot money may rotate from Equities (Stocks) and Bonds back into the precious metals (Gold, Silver) and metals (Copper etc) market as a rotational strategy. With the majority of market participants outright bearish on Gold and worse bearish with convictions, there hence exists good entry points for Gold currently.
Additional Note:
This means US Dollar has a potential downside for the entire duration when Gold goes up to $1550.
All Previous Gold Analyses:
Mark the targets down in your memory.
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