Hey guys, I just finished another article on gold as we're nearing another critical resistance level. It's posted on Stockineer. Here's an excerpt from the article, but obviously I can't post the charts here. I hope this helps some people:
"Since the last update in late June where gold had hit our price target, it’s done nothing but go up! Not too shabby, eh? However, the mood is changing a little as we’re running into a world of resistance. I’d like to point out the concurrent SAR between the price of gold and the S&P 500. As the S&P sits on major support, Gold sits on major resistance. Coincidence? I suspect that if the market breaks low, gold will simultaneously break high, making it a good hedge. The downside is that there’s a world of resistance above making gains tough, even if it breaks out. I’d still probably take the trade of an upward breakout just as a hedge in case really bad things happen! Here’s how I am interpreting the charts to show you why I’m saying these things…
The 6-month chart shows what looks to be a developing inverse head and shoulders. This only shows part of the story so I wanted to take a look at a multi year chart to see if overhead resistance is nearby. In this chart, the 200 MA is sitting at 1500 which makes for only a small $75/oz trade before the first major resistance."
The charts are on Stockineer which should make this description a little more obvious. Good luck guys.