Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  
Topics:ChinaETFsEarningsEconomyEnergyForexGoldIncomeLessonsIdeasTrading

  • Other news: News from PR Newswire
| More

October 25 Updating Gold into Key Support Target

Fri, Oct 26, 8:12 AM ET, by Corey Rosenbloom

In last week’s post on Gold’s chart, I highlighted the breakdown and new momentum lows which suggested a deeper retracement toward the $1,700 to $1,720 targets.

With gold achieving those downside targets this week, let’s take a look at the current key levels and note the levels to target on the upside if support holds, or downside targets if $1,700 suddenly fails.

Here’s the larger perspective daily chart:

With the divergences into the October high at $1,800, odds favored a price retracement to lower support.

Once price broke under the rising 20d EMA, the next lower support target became the 50d EMA at $1,720 and beneath that is the $1,700 “Round Number” Level.

That’s where we focus our attention currently in terms of the short-term picture in gold.

As we can see in the chart above, the $1,700 area is also the 38.2% Fibonacci Retracement as drawn and it’s a simple “Round Number” Reference level.

There’s absolutely no guarantee this level will hold which is why we craft “Support/Bounce” upward targets and “Breakdown” lower price targets.

A strong bounce simply targets the $1,740 level, and a firm breakthrough above that suggests that the larger trend has resumed to the upside, opening the pathway eventually to $1,800 again.

We’ll see that short-term odds seem to favor the “Bounce” logic, but if sellers suddenly resume command and break price cleanly under $1,700, we would need to look to lower potential support targets.

The next logical immediate support confluence develops at the overlap of the 50% Fibonacci Retracement and the 200 day SMA at $1,670.

It will be at $1,670 – should price break under $1,700 – that we’ll develop the same “Will it Break or Will it Hold?” logic.

The lower frame supports the “Bounce” Thesis unless we see a sudden break under $1,700:

Be sure to reference the intraday chart from the prior update to see a lesson that was played out in real time regarding the important Momentum Principle (momentum precedes price).

The new momentum lows on October 15th I highlighted did suggest that lower price lows were likely yet to come – they did.

The current intraday chart shows minor positive divergences as price challenges the support of the $1,700 confluence.

Today’s upward action and spike in momentum also tilt the odds to favor further upside action (the “Retracement” Thesis) and that’s what we’ll be monitoring into next week.

We’ll need to see price confirm the upward move with a breakout above the $1,720 short-term level and if so, we’ll continue looking for the $1,740 level as a minimum upside target.

Once again, there’s never a guarantee any support level will hold, so if you’re trading gold on the short-term frame, keep a keen focus on what happens at the current “Battle for $1,700.

Join me and many other speakers and fellow traders at the November Traders Expo – it’s quickly approaching so register now if you’re considering attending!

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey's new book The Complete Trading Course (Wiley Finance) is now available!

blog.afraidtotrade.com


SDI Glossary: "price" Definition
SDI Glossary: "Finance" Definition
SDI Glossary: "Retracement" Definition
SDI Glossary: "Support" Definition
This Article's Word Cloud:   Bounce   Corey   Fibonacci   Number   October   Once   Retracement   Round   Thesis   Will   above   afraidtotrade   again   also   break   chart   confluence   current   divergences   favor   frame   gold   guarantee   hold   into   intraday   larger   level   levels   logic   lower   lows   momentum   next   odds   price   short   suddenly   support   target   targets   term   that   under   upside   upward   week   what   which   will

| More

Finally a Sign of Life for Chipotle CMG
Wed, Mar 29, 12:21 PM ET, by Corey Rosenbloom

Chioptle’s (CMG) stock had a bad run of it after collapsing in 2015. Last year ...

Emini Stalling on a Key Fibonacci Pivot March 29
Wed, Mar 29, 12:11 PM ET, by Corey Rosenbloom

We continue to frame each day’s trading day in terms of our intraday Fibonacci Grid. ...

Surging Through Our Fibonacci Grid Emini Update March 28
Tue, Mar 28, 12:11 PM ET, by Corey Rosenbloom

Today is another victory for our short-term Fibonacci Grid trading plan. Why? Let’s find out! ...

Deere DE Sets up a Rounded Arc Reversal Breakdown
Mon, Mar 27, 3:21 PM ET, by Corey Rosenbloom

The “Rounded Reversal” Pattern takes a while to set-up on the chart but can produce ...

AAOI Surging to Sixty with Two Bull Flags
Mon, Mar 27, 12:41 PM ET, by Corey Rosenbloom

We like to buy pullbacks in strong trends with rising volume and momentum. A stock ...

Final Fib Emini Update March 27
Mon, Mar 27, 11:51 AM ET, by Corey Rosenbloom

The weekend collapse took us straight into our “Final Fibonacci” Target, where we’re seeing a ...

Micron MU and the Persistence of Stable Trends
Fri, Mar 24, 4:11 PM ET, by Corey Rosenbloom

“Trends, once established, have greater odds of continuity than of reversing.” Micron (MU) is a ...

Fibs Fibs Fibs All About the Emini Fibs March 24 Update
Fri, Mar 24, 1:51 PM ET, by Corey Rosenbloom

Our short-term Fibonacci Grid continues to capture the highs and lows of the last couple ...

Join Me Wednesday March 29 for a Live Market Forecasting Panel with Wyckoff Analytics
Thu, Mar 23, 9:11 PM ET, by Corey Rosenbloom

We’re doing it again! I’m honored to be a guest of Roman Bogomazov and his ...

Exciting Emini Bounce Update March 23
Thu, Mar 23, 12:11 PM ET, by Corey Rosenbloom

Often after a crash comes a recovery. That’s what’s happening at the moment in the ...

A Second Divergent Drop for Google GOOGL
Wed, Mar 22, 3:41 PM ET, by Corey Rosenbloom

Google (GOOGL) rallied a second time into a key reversal or “fade” set-up and delivered ...

Quad Market Movement as the Stock Market Crashes March 21
Tue, Mar 21, 2:11 PM ET, by Corey Rosenbloom

This morning we just updated the “Stock market crashing through key target levels” but what’s ...

Disney DIS Slides to New Highs on Divergences March 20
Mon, Mar 20, 2:21 PM ET, by Corey Rosenbloom

Disney (DIS) continues to be a “strong stock getting stronger” which is evidenced by today’s ...

Emini Playing into Critical Fib Support Level Today March 20
Mon, Mar 20, 12:41 PM ET, by Corey Rosenbloom

After yesterday’s Fed Day, stocks surged back toward the prior high, breaking their Fibonacci Grid. ...

Announcing Trader Education Week Next Week
Fri, Mar 17, 6:21 PM ET, by Corey Rosenbloom

Get ready for Trader Education Week! Traders Classroom and Club EWI are opening up March ...

Emini Heading Toward the Highs March 16 Update
Thu, Mar 16, 2:51 PM ET, by Corey Rosenbloom

After yesterday’s Fed Day, stocks surged back toward the prior high, breaking their Fibonacci Grid. ...

Here Goes our Fourth Successful SPX Bull Flag Since November
Wed, Mar 15, 3:11 PM ET, by Corey Rosenbloom

If you’re keeping track, the market is poised to complete its fourth successful Bull Flag ...

Fed Day Fibonacci in the Emini Gameplan March 15
Wed, Mar 15, 1:21 PM ET, by Corey Rosenbloom

It’s the Ides of Mach! And a Fed Day! Do you know where your Fibonacci ...

Emini Bounces Between our Fibs Again March 14
Tue, Mar 14, 11:31 AM ET, by Corey Rosenbloom

We’re still seeing range action between our key short-term Fibonacci Levels in the Emini @ES. ...

A Bad Day for Wearables GoPro and FitBit GPRO FIT
Mon, Mar 13, 3:51 PM ET, by Corey Rosenbloom

Popular wearable Fitbit (FIT) and GoPro (GPRO) both plunged over 4% today, continuing their ongoing ...

Flailing within the Fibs Emini Update March 13
Mon, Mar 13, 1:11 PM ET, by Corey Rosenbloom

After gapping higher Friday, stocks stalled beneath our key short-term Fibonacci Level. We’re seeing price ...

Big Downside Surprise for Finisar FNSR on Three Push Reversal Pattern
Fri, Mar 10, 1:21 PM ET, by Corey Rosenbloom

The “Three Push” Reversal pattern is one of my favorite chart patterns and set-ups to ...

Playing the Jobs Report Fibonacci Bounce March 10
Fri, Mar 10, 1:11 PM ET, by Corey Rosenbloom

A slightly better than expected morning Jobs Report sent shares surging on Wall Street, gapping ...

Emini Crashing Down to the Lower Fibonacci Target March 9
Thu, Mar 9, 2:41 PM ET, by Corey Rosenbloom

Well folks, here we are, crashing through the “First Fib” down to the official 38.2% ...

Crude Oil USO Finally Does Something Interesting Again March 8
Wed, Mar 8, 3:11 PM ET, by Corey Rosenbloom

I’ll be honest – I stopped caring about Crude Oil for most of 2017 because ...

Emini Building Rally off Make or Break Support March 8
Wed, Mar 8, 2:11 PM ET, by Corey Rosenbloom

It was so nice the market did it twice! And today makes three times the ...

Gold Also Tumbles to Key Fibonacci Level
Tue, Mar 7, 2:21 PM ET, by Corey Rosenbloom

Like the S&P 500, Gold pulled back to a key Fibonacci and price overlap target. ...

Straight Back to our Emini Fibonacci Target We Go March 7
Tue, Mar 7, 1:41 PM ET, by Corey Rosenbloom

It was so nice the market did it twice! Today we’re seeing a Repeat Day ...

Top Ten Put and Call Option Volume and Activity March 6
Tue, Mar 7, 8:11 AM ET, by Corey Rosenbloom

File this under “interesting reference post” – as these are the top ten stocks and ...

A Quick Collapse toward Support Target in Advance Micro AMD
Mon, Mar 6, 3:11 PM ET, by Corey Rosenbloom

Advanced Micro Devices (AMD) more than doubled since last November. However, March has not been ...

Bam Goes the Emini Fibonacci Reversal at Target March 6
Mon, Mar 6, 1:11 PM ET, by Corey Rosenbloom

Did you think it was impossible for the market to pull back to the first ...

Planning Gold as it Declines from Swing High March 3
Fri, Mar 3, 12:31 PM ET, by Corey Rosenbloom

Gold rallied strongly from the $1,120 low to the recent price target near $1,260. What’s ...

The Plot Thickens as the Emini Decline Deeper March 3
Fri, Mar 3, 12:11 PM ET, by Corey Rosenbloom

Do not adjust your computer monitor – you’re actually seeing the Emini pull back from ...

An Actual Emini Pullback from 2400 March 2
Thu, Mar 2, 12:41 PM ET, by Corey Rosenbloom

Do my eyes deceive me or is that an actual authentic pullback in the @ES? ...

Apple AAPL Accelerates Trendline Rage through 140
Wed, Mar 1, 4:11 PM ET, by Corey Rosenbloom

Apple (AAPL) shares raged higher today with an acceleration gap through the $140 per share ...

Are You Watching the Huge Breakouts in Financials XLF FAS FAZ
Wed, Mar 1, 12:41 PM ET, by Corey Rosenbloom

Financials! We’re seeing financial stocks – seen fastest by the XLF Sector EFT – surge ...

Just Showing the Pure Price Emini Breakout Today March 1
Wed, Mar 1, 12:11 PM ET, by Corey Rosenbloom

The market is surging this morning, extending the bull market with a short-squeezed bullish breakout. ...

Ten Years Since the Biggest VIX Spike Ever
Mon, Feb 27, 3:51 PM ET, by Bill Luby

Ten years ago today, we witnessed that largest one-day VIX spikein the nearly three decade ...

The VIX Summit: CBOE RMC (March 8-10 in Dana Point, CA)
Sun, Feb 26, 3:11 PM ET, by Bill Luby

I often get asked about where to go to learn more about the VIX and ...

Clustering of Volatility Spikes
Sun, Feb 26, 2:11 PM ET, by Bill Luby

Last week, my Putting Low Stock Volatility to Good Use (Guest Columnist at Barron's) triggered ...

Defensive Gold and Treasuries Bullishly Break Resistance
Fri, Feb 24, 12:11 PM ET, by Corey Rosenbloom

File this under “very interesting” – defensive markets Gold and Treasuries just reversed higher. If ...

Sharp Down but Fast Up Emini Pullback Update Feb 24
Fri, Feb 24, 11:31 AM ET, by Corey Rosenbloom

And the plot thickens! Stocks pulled back for a second time this morning, gapping lower ...

Super Down for L Brands New Breakdown Low
Thu, Feb 23, 2:51 PM ET, by Corey Rosenbloom

“Stocks which are weak and downtrending tend to get weaker and go lower.” That’s precisely ...

How Other Markets Behaved while Stocks Surged Feb 22
Wed, Feb 22, 2:11 PM ET, by Corey Rosenbloom

It’s easy to be distracted by shiny objects, like the non-stop stock market rally since ...

New Highs as Far as the Eye Can See (for now) Feb 22
Wed, Feb 22, 11:21 AM ET, by Corey Rosenbloom

It’s rare to see broad market impulses this strong and persistent but yet here we ...

SPX 1, 2 and 3-Year Returns Following Top and Bottom Five (and Ten) VIX Average Annual Readings
Tue, Feb 21, 8:11 AM ET, by Bill Luby

On Saturday, I posted Putting Low Stock Volatility to Good Use (Guest Columnist at Barron's) ...

Putting Low Stock Volatility to Good Use (Guest Columnist at Barron's)
Sat, Feb 18, 5:21 PM ET, by Bill Luby

With spring training just getting underway in Florida and Arizona, I think it is appropriate ...

March Class Special: Detecting Tradable Setups and Reliable Signals with Corey
Thu, Feb 16, 12:11 PM ET, by Corey Rosenbloom

I’m excited to announce an upcoming full-month of classes and actionable trader education for you ...

We Forgot what a Pullback Was Market Update Feb 16
Thu, Feb 16, 11:11 AM ET, by Corey Rosenbloom

Wait – what is this? Price can actually go DOWN? After the last five days, ...

Bulls Still Dominate the Highs Feb 15
Wed, Feb 15, 1:31 PM ET, by Corey Rosenbloom

The uptrend continues! And continues… and continues. And still continues even after yesterday’s pullback. ...

  More articles:  1 2 3 4 5 6 7 next »

ABOUT US »   ADVERTISE »   CONTACT US »   TERMS OF USE & PRIVACY POLICY »

October 25 Updating Gold into Key Support Target | Self Directed Investor | Copyright © 2008 - 2017, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: ValueForum.com -- a subscription-based online social networking forum of serious individual investors. | MarketNewsVideo.com -- videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.