Everyone keeps wondering and have below questions:
Lets see if below analysis helps us to make a better decision....
- Shall we buy it now?
- Prices are so high already, will it go higher or Is this a bubble?
- Lot of doubts and confusion
Lets see if below analysis helps us to make a better decision....
Below is a monthly chart of GOLD. Check out the yellow circles, every time GOLD tried to get out of those shaded bands called as "Bollinger Bands", it was pushed back in the bands and HAD to touch the black line after which it rallied.
Below is the weekly chart of GOLD. It is clearly evident that anytime GOLD fell below blue/green line then it did one thing for sure. As soon as it broke above the blue/green line for 1st time, it pulled back and tested both lines before rallying higher.
Below is a closer look at current weekly chart of GOLD. The yellow area suggest possible buying opportunity before nest rally UP. However let's not forget, if at all GOLD keeps falling then it has support near 148 zone BUT break of it will be critical and might fall further to 132 area. So what will it be?
It looks like GOLD is presenting us with a wonderful buying opportunity for now, all signs suggest that we might see a rally soon but why?
Based on above analysis, whats your take!!!!
- US election results will be out next Wednesday - No matter which candidates is elected as President, the debt keeps growing, a sad scenario.
- US debt crisis will come in forefront as congress did not make any decision regarding fiscal cliff and we might get to see August of 2011, all over again.
- Euro-zone crisis are NOT yet resolved and 2013 will be a history in the making
- All above scenarios will add more uncertainty in near term, which in turn will drive gold higher, Isn't it!!!
Based on above analysis, whats your take!!!!