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Thursday, September 5, 2013
GOLDPIVOTS AND SILVERPIVOTS: GLD ETF ECHOVECTOR PIVOT POINT ANALYSIS MULTI-PERSPECTIVE FRAMECHARTS UPDATE: 2-YEAR DAILY OHLC, 1-YEAR DAILY OHLC, BI-QUARTERLY AND QUARTERLY DAILY OHLC PERSPECTIVES: "Watch Out On Gold"
Watch Out On Gold
Last Friday I wrote an article titled, "Today Is An Important Day in Gold" cautioning the gold market on the strong possibility of an impending potential reversal in gold's impressive 17% rally since late June's summer low. In the article, I usedEchoVector Analysis to show that, if the gold metals market did not produce powerfully impressive and strong price action that Friday going into Labor Day Weekend, and also strong price extension and follow-through the next two week's following Friday's action, a significant downward pivot would occur in gold's active annual echovector. This impending "downward pivot in the annual echovector, with a significant slope momentum force" could easily reverse the rally gold has seen since late June, and this pivot had already been set up in gold existing price pattern if this significant upward price action these weeks simply failed to occur.
Well, last Friday's price action in gold was anything but impressively strong, with gold price instead actually falling yet more than another full point on the GLD ETF. This significant pivot in the annual echovector did occur instead. And gold bulls should be concerned. Tuesday's post-Labor Day Weekend buying did nothing to offset this pivot.
This pivot, along with Friday's gold price failure in the midst of significant fundamental strengths that should have been working in gold's favor, may provide important reasons to cover longer-term long positions in gold. Gold enthusiasm remained absent Friday, even with the Syrian issue still very much on the table. This has continued into this week. A falling Indian rupee and a sliding Euro did not help gold either last Friday, as some analyst had expected they would. Nor did a further selloff in the US stock market help, even with added concern of a potentially difficult September for US stocks possibly coming this year still there as well. Jobless claims came in better-than expected this week also, and the US dollar also strengthened, neither helping gold prices. And some analyst believe today's jobs report will follow suit.
With these additional fundamentals also weighting on gold, additional strong selling in gold this week has further confirmed last Friday's technical importance, and very much re-introduced the possible resumption of this year's strong downward momentum in full force. The following chart highlights the significant momentum change that occurred as of the close of trading yesterday. Gold bulls may be particularly concerned with its recurrence.
(Click on chart to enlarge. Open chart in new tab and click to enlarge and further zoom.)
GLD ETF 1-YEAR DAILY OHLC
(click to enlarge)
The solid white echovector illustrates and highlights the strong annual downside echovector slope momentum in effect from last summer's corresponding echo-back-date to this summer's gold price low at the end of June.
The solid purple annual echovector slope illustrates the less strong downside echovector momentum slope that had been achieved since then into last week as a result of our rally and price gains since the June 2013 low.
However, also notice how gold needed a continued rally from last week; in fact, a strong upward price move in gold was needed going into labor day weekend, with significant follow through this week and next week as well, to maintain this better slope and an implication of continuance, and to not instead pivot and resume the strong downward momentum that so dramatically defined this year's sell-off into the summer. This is illustrated by the white-spaced annual coordinate forecast echovector.
With Thursday's sell-off we have completely resumed the strong downward annual price momentum that defined this summer's lows. This is illustrated and highlighted by the parallel white-dotted echovector running from Thursday to its corresponding Thursday annual echo-back-date this week last year.
It may be time to 'watch out' yet once again, if you are gold bull positioned long into next year. Gold could see a small bounce going into the week following options expiration in September. But this will do nothing regarding moving gold out of the newly reacquired and now fully resumed strong downward annual echovector momentum active at its currently yearly low this summer.
Thanks for reading. And good luck with your gold investing and trading.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
This article is tagged with: Gold & Precious Metals
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