Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
How Stagflation Effects Stocks - 5th Dec 21
Bitcoin FLASH CRASH! Cryptos Blood Bath as Exchanges Run Stops, An Early Christmas Present for Some? - 5th Dec 21
TESCO Pre Omicron Panic Christmas Decorations Festive Shop 2021 - 5th Dec 21
Dow Stock Market Trend Forecast Into Mid 2022 - 4th Dec 21
INVESTING LESSON - Give your Portfolio Some Breathing Space - 4th Dec 21
Don’t Get Yourself Into a Bull Trap With Gold - 4th Dec 21
GOLD HAS LOTS OF POTENTIAL DOWNSIDE - 4th Dec 21
4 Tips To Help You Take Better Care Of Your Personal Finances- 4th Dec 21
What Is A Golden Cross Pattern In Trading? - 4th Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Price Upside Breakout Whilst Crude Oil Continues to Slide Lower

Commodities / Gold & Silver Nov 24, 2008 - 12:36 AM GMT

By: Chris_Vermeulen

Commodities

Best Financial Markets Analysis ArticleShining gold prices & gold stocks and slippery Oil prices and energy stocks

Gold prices shot up on Friday as investor's move their money into a safer investment as the broad market continued it crash the day before breaking the October bottom. Once the price of gold climbed over the $760 mark which was a short term resistance level the price shot higher as new buyers jumped in and short covering took place pushing gold to climb $57 in one day which you can see in the chart below.


Spot Gold Prices ā€“ 3 Day Intraday Chart

Now, looking at the daily chart of gold below, it appears that it has put in a double bottom with a nice rally higher. Also confirming this move may not be over yet is the MACD cross over and the strength of gold. Its best to waiting for a low risk setup before any money should be put to work. We are getting close to possible buy signals if things continue to hold up over the next week or so. Gold will find resistance between $800 - $825 and could take a breather for a few days which could provide a great setup if we are lucky.

Daily GLD Gold Price Chart

Gold stocks shine as they rally big on Friday out performing the price of gold and possibly putting in a higher low for the HUI which could be the start of an upward trend. Keeping a close eye on the performance of gold stocks will help confirm a low risk setup for trading gold (GLD, DGP, and Spot Gold). If gold stocks are performing well during a gold buy signal I generally put more money to work on that trade as opposed to gold stocks underperforming the price of gold.

Daily Gold Bugs Chart (Gold Stocks)

A longer term look at gold stocks performance which is shown in the chart below is the fact that they are bouncing off long term support which has been tested 5 times. This is very bullish for gold and gold stocks as well.

Monthly Gold Stock Chart

Slippery Oil Prices

Oil Traders cannot believe the slide in oil since June this year. Last Thursday oil closed below $50 which is a long ways of its $150 high not to long ago. A couple interesting things show up on my oil chart which I thought are worth pointing out. Obviously the price of oil is severely oversold and due for a dead cat bounce if not a ā€œVā€ shaped bottom. But although prices continue to slide the momentum is starting to shift to the up side. The MACD is trying to move higher which is a good thing and also the fact that oil is at the bottom of it channel. Also energy stocks are out performing the price of oil like crazy!!! This is extremely bullish and a bounce in oil will send energy stock soaring. I will note that a lot of energy stocks pay a dividend and with their share prices being pushed down to these extreme levels, investors are starting to buy because the dividend rate is so high and most of these companies make solid earning year after year so at these prices the shares look attractive to many.

Oil Trading Chart (USO)

Conclusion:

I don't try to predict market direction because it's a fools game, I do think we have some exciting times just around the corner if the market does find support in the next week or so. I have been in cash since August waiting for a setup but volatility is ridiculously high and I don't put my money to work if I'm risking more than 3% on a trade. Gold Stocks are starting to have money flow back into them and oil is starting to look like its downward move is almost exhausted. I continue waiting for a proper setup with low risk as I believe in taking the safe middle section of trends and not trying to pick tops or bottoms.

I am a full time daytrader and swing trader specializing in trading GLD, GDX, XGD.TO, SLV and USO. I provide my trading charts, market insight and trading signals to members of my newsletter service.

By Chris Vermeulen
Chris@TheGoldAndOilGuy.com

Please visit my website for more information. http://www.TheGoldAndOilGuy.com

Chris Vermeulen is Founder of the popular trading site TheGoldAndOilGuy.com.  There he shares his highly successful, low-risk trading method.  For 6 years Chris has been a leader in teaching others to skillfully trade in gold, oil, and silver in both bull and bear markets.  Subscribers to his service depend on Chris' uniquely consistent investment opportunities that carry exceptionally low risk and high return.

This article is intended solely for information purposes. The opinions are those of the author only. Please conduct further research and consult your financial advisor before making any investment/trading decision. No responsibility can be accepted for losses that may result as a consequence of trading on the basis of this analysis.  

Chris Vermeulen Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in