Comex nearby gold futures late last week pushed to a new all-time record high of $1,249.70 an ounce. The fact gold futures prices have pushed to a new all-time high suggests much bigger upside targets in the coming weeks and months.
There are not yet any early near-term technical clues to suggest a market top is close at hand in the gold market. The path of least resistance for gold will remains sideways to higher until some technical warning flags are raised.
Here are some early near-term technical warning signals that, if they occur, should put the gold market bulls on high alert that at least a near-term market top is in place in the precious yellow metal:
-- the near-term price uptrend on the daily bar chart being negated. If gold prices drop significantly below the last "reaction low" on the daily bar chart, that would negate the near-term price uptrend in gold. At present, the last reaction low on the daily bar chart in June gold futures is the May low of $1,156.20. A reaction low is a downside price correction that occurs in an uptrending market. Uptrend lines on the bar charts are drawn from the reaction lows. (more)
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