Find us on Google+
Subscribe Via RSS

Brexit – Gold says no – Bull Trap

weekly gold chart bull trap

 

Brexit is coming, Gold on the other hand said “NO BREXIT” but instead has a BULL TRAP.

A fascinating shift in the market where physical gold is beginning to lead the futures market.  The demand for physical Gold has been increasing over the past few months, leading to support increasing as gold is reaching new highs.  The key is in the charts and we can see that there is a bull trap that was sprung recently off of the highs.  Let’s check the charts.

Gold Trading- support is inThe Monthly gold chart shows the major down trend with a declining wedge.  The past 3 months have consolidated between 1210 and 1300.  This past week we saw price head to a new high at $1318 an ounce.  The past three months volume is staying pretty high and consistent.

We are presently below the 200 moving average in Red.  On a long term chart this is the key for bulls being in control and getting out of this bear trend.  The finish of this trend could occur around some Outlier. The BREXIT seemed like it could be the stimulus which would send us to these new highs and break through the monthly chart but did not pay off as price came $50 off the highs.


The weekly chart in Gold also sets up nicely with some tells.

weekly gold chart bull trap

Bull TRAP reveals itself in price failure over 1300 on reversal from high and increasing sell side volume.

Gold prices above $1300 an ounce were met with selling as price moved towards last weeks highs.  Buyers could not hold their ground as increased sellers moved price lower and then a move of $36 an ounce down into the pre Brexit vote coming tomorrow.  If this isn’t a bull trap, then we might see this resistance shattered and a move to 1363-65 area and a further move to 1385 then 1450 if there is a BREXIT.  As of now the buyers have lost their steam and we could see a test to previous swing lows at $1200.


Follow up from BREXIT vote count, looks like the Bull trap was actually a set for breaking to new highs.  We can’t tell yet.

Here is the follow up chart.

Entry at 1260.

gold trading after Brexit

Markets Rally – Markets Fall monthly trading plan

Markets crash - markets rally

 

Monthly Trading Plan S&P500 on a Financial precipice seeing direction on a monthly trading chart.

monthly trading plan Trading plan, take a look at what happened when these monthly moving averages crossed.

March 30, 2001 we have a cross with divergence showing us a 600 point sell off from highs.

December 31, 2003 Bullish cross with a 700 point rally to the up side..

July 31, 2008 a bearish cross with a 900 point sell off from highs.

April 30, 2010 bullish cross with a 1450 point move to the upside.

May, 2016 upcoming cross or continuation to the upside?

We shall see.

Standing on this what is considered to be an over bought market, where the markets have bought too much, risk is not represented with a 0% interest rate, and a Central Bank policy of never ending printing and purchase of bonds and stocks. A reversal may not occur.

The question is:  What kind of intervention will we see on the next sell off?

stock prices fed policy holdsTo infinity and beyond! Central Bank Support will catapult to new market highs.

Will the Fed save us if we retrace to previous support and then sending us on to our next round of highs for 4 more years of corporate expansion?

Upside target of 2950.

Is this our reality?  If you see that the market has direction then buying the dips could be part of the monthly trading plan.

 

 

 

Reality hits the markets – targets for a falling market.

Market reality on a major sell offIf Fed policy doesn’t hold watch for these areas of support.
With the worst case scenario back to 950.

If we break the major support at 1800.

If The market reverses, our next major support is 1550 to 1580 then 1350.

Major sell off support at 950.

We shall see.

 

Trading Plan – as January goes so goes the year.

trading plan 2016

 

S&P500 Emini future Trading Plan – As January goes so goes the year.  Corona, Ca Jan. 28, 2016

Traders have many superstitions which are backed by some correlations and timing.  One of these is:  as the first day of market goes so goes the week, so goes the month and so goes the year.  If this is the case then this could be a down year for the market.  We have a few more days to go so we shall see.

The S&P500 has some pressure to retrace as it has tested major support at the 1800 psychological support level.  trading plan 2016

Inverted Head and shoulders could extend the buyers move up to resistance 1911, 1940, then 1956.

If sellers execute off this possible flag pattern, then we could retest the support at 1865, 1849. then 1804.  If the market sells off then watch for 1769.25 as next major support.

Lots of volatility headed into this market with no clear direction in this consolidated area with smaller range candlesticks during this past week.

Will we confirm this past move down to 1804? Will we execute off of support and buyers control the next move up from the Inverted Head and Shoulders?

Conflicting patterns.  Short term day trading of support and resistance based on commitment of traders are giving the most solid signals.

Next we look at a trading plan for Gold and how buyers are getting squeezed on all the reversals from lows.  News is pushing this market around with a lot of volatility.  If you are new to trading it is best to stand on the side and practice your entries and stop management in a simulated trading account.  There is no real direction in the market with a lot of media claiming we are oversold.  This could be a consolidation zone where the market is resting to gain strength either for a reversal or continuation of the move down.  We will see who commits to the direction of the market soon as our daily price range is decreasing.

 

This site and Money Maker Edge™ and authors do not offer individual financial, investment, medical or other advice. Nothing on this site should ever be considered to be personal advice, research or an invitation to buy or sell any securities. We also make mistakes and bad decisions sometimes, and our reasoning or data should be checked against trusted sources before they inform your investing decisions.Choices regarding how to invest your money or otherwise manage your life or finances are yours, we share only our analysis and opinion and all authors or commenters are individually responsible for the words and opinions they share here. Please read our important disclaimers and policies.Money Maker Edge™ is supported by subscribers and by sponsors and advertisers. Money Maker Edge™ authors Trade what they are writing about and should be assumed to have holdings.

Money Maker Edge™

Money Maker Edge™ Trading Course 866-640-3737
Powered by WordPress All Content Copyright © Day trading course S&P 500 learn how to trade
Theme created with SpiderWeb Press™.