Technically Precious with Merv

Is it the economy, is it world tensions, who cares, the precious metals just keep on going higher and higher. Where they will stop nobody knows. But they will stop sometimes. Tomorrow or next year, that’s the question?

GOLD

LONG TERM

During a bull market the long term changes very seldom. Looking at all the indicators the positive ones just continue to be positive. No use wasting much time trying to analyze something that doesn’t change. The gold price remains above its positive moving average line, the long term momentum indicator remains in its positive zone above a positive trigger line and the volume indicator continues to move higher above its positive trigger line. All is still right with gold and the long term rating remains BULLISH. The long term point and figure chart continues on its upward path and remains bullish also.

INTERMEDIATE TERM

The price of gold has been in a blazing up trend for over two months now. It had been trapped inside a well defined and narrow up trending channel but this past week moved above the channel upper resistance line. Whether this is a warning of future sharp up moves or just a very short term blip on the chart remains to be seen. It may be setting itself up for a new trend that is more aggressive than the past two months but as mentioned, that remains to be seen. The intermediate term momentum indicator had also been in a well defined upward tracking channel and this past week moved out of the channel, but only for a couple of days. It closed the week back inside the channel. The same for the volume indicator. It broke above its channel upper line but by the end of the week was back inside the channel, although right at the upper levels of the channel. (more)