Technically Precious with Merv

Well, the weakening momentum of the gold move that I had been warning about seems to be
doing its job. Gold is in a little bit of a down draft. For how long and for how far is anyone’s
guess? For now the $1320 mark is the price to watch based upon a P&F chart. Once there
we’ll see what next.
GOLD
LONG TERM
We’re still waiting for the $1320 level to be breached for the P&F chart to go bearish long term
(however, the real break below the P&F up trend line may be at the $1305 level). It’s a weak
market but not yet a long term bear from the P&F perspective.
The long term indicators are still nowhere near a collapse. The gold price just might reach the
up trending moving average line next week but I doubt that the line will turn negative on such
move. The momentum indicator is still well inside the positive zone and here I don’t see a
break into the negative at least for a couple of weeks. The indicator is below all recent levels
and heading towards its previous low at the July level. It is also below its negative trigger line
so although it still is in its positive zone it is showing a great deal of weakness. The volume
indicator is basically tracking a lateral path but is sitting almost right on top of its positive
sloping trigger line. Putting all this together we still have a BULLISH long term rating but
getting weaker each week.
INTERMEDIATE TERM
The rating here was bearish last week and remains so this week. The gold price is moving
farther below its negative sloping moving average line. The momentum indicator has now
entered its negative zone and is below its negative sloping trigger line. Although in its negative
zone it is still not quite at the negative level that it reached in late July prior to its low and start
of the latest rally. The volume indicator is now below its negative sloping trigger line for
confirmation of the recent price moves. As mentioned, the intermediate term rating is
BEARISH. This is now confirmed by the short term moving average line dropping below the
intermediate term line. (more)