Friday, 22 July 2011

Gold Walks The Lines

As I've mentioned previously, Gold is testing the topmost parallel trend line from above. Not only that, I noticed just now that it has climbed back above the up trend line drawn from the January low. I can't shake the feeling that if Gold can break above this week's highs, it might be its time to go all bubbly on us. 

Daily Charts Wrap

Big rally last night (Oz time) for stocks, USD smashed, with Gold and Silver drifting. Let's have a look at the daily candlestick charts.

S&P 500 for the year so far. Moving averages indicate strong up trend. Possible resistance at 1360.

Slightly longer term view of ASX SPI 200, shows it is now testing the trend line from the May 2010 overnight low.

EUR/USD. The action from the May high now looks like a correction of the preceding rally, implying a move to new highs. The moving averages are crossed bearishly. At this time frame, a confusing picture. 

AUD/USD rallied, and if the current daily highs can be broken, a test of the May high just above 1.10 would be likely.

GBP/USD. The Head and Shoulders top pattern has now been eliminated. The downwards hourly chart trend line bounce that I identified a dozen hours ago didn't last long. The great strength of using trend lines as trade entry triggers, is that they give you a definite point to enter your stop-loss. Further, trade entries that are quickly stopped out are often good a good signal to reverse position.

Gold is testing the parallel trend line from above. 

Silver. While the larger degree trend is certainly up, a move above the trend line is needed to have a continued bullish view at this time frame.