Hello Traders,
It’s a Monday once again, US holiday and it’s going to be a slow day. It’s not always slow for Gold, initial move up after US Presidential elections as investors moved away from risky assets towards Gold and other world reserve currencies like the EURO, GBP and Yen, now wonder they outperformed other currencies and fading their initial bullish or bear moves. But that turned out to be an overreaction as reassessments were made and investors came to terms with a Trump presidency.
Today we look at Gold and basing our reasons from the charts, I really think it will be a nice ride down in the coming months. Investors were banking on gold to reach the $1375/ounce mark but that was too ambitious. 25% appreciation for the year and people want more, that won’t happen unless there is a move down first allowing investors to load their bullish bazookas which might happen only if there is a US rate hike in December. Remember, a high interest rate is supportive of commodities and precious metals. For you to understand, take a look at how QE and interest rate slash from the financial crisis took a hit on Gold, Silver, Platinum and Agricultural commodities. Now, observe the charts and look at what happened after Dec 23 rate hike in 2015, Gold dipped initially before rallying to July’s highs at 1380.
Gold and Gold mining company stocks have a positive correlation and the performance of one will automatically have an impact on each another. I usually observe the Eagle-ticker symbol AEM-Agnico-Eagle Mines Ltd and right now it is flying low and retracing from the monthly highs with a sell signal printed already. Just like Gold. This means, we sell till a buy signal is printed on the monthly chart in either AEM or Gold monthly chart before we fade the current bear move.
Since the weekly and monthly charts are the leads, look to enter in 1HR charts at the resistance zones marked in the chart attached. Trade as follows as there are three possible entries dependant on when a sell signal will be formed in the 1HR chart:
Trade 1:
Sell: 1230
Stop Loss: 1250
Take Profit: Trail Profits
Trade 2:
Sell: 1250
Stop Loss: 1270
Take Profit: Trail Profits
Trade 3:
Sell: 1270
Stop Loss: 1300
TP: Trail Profits
Have a good trading day.

AEM Stock-Monthly chart-14.11.2016

Source: Dalmas Ngetich

Gold-1HR Chart-14.11.2016

Source: Dalmas Ngetich

Gold-Daily Chart-14.11.2016

Source: Dalmas Ngetich

Gold-Monthly Chart-14.11.2016

Source: Dalmas Ngetich

Gold-Weekly Chart-14.11.2016

Source: Dalmas Ngetich

One thought on “FOLLOW THE LEAD, SHORT GOLD AS GOLD MINING COMPANIES PRESS THE BRAKE PEDAL-GOLD DAILY ANALYSIS FOR14.11.2016”

  1. Short gold now with immediate targets at 1200. stop loss at 1220 for some 200 quick pips

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