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

March 5 Stock Stab Scan and Market Update
Thu, Mar 5, 3:21 PM ET, by Corey Rosenbloom

Stocks stabbed at the lows with more sharp rallies today, as we’ve seen over the ...

March 4 Repeat Day Market Update and Stock Scan
Wed, Mar 4, 2:11 PM ET, by Corey Rosenbloom

Today’s session is playing out identically to yesterday’s session, with the early down-move and the ...

Bull Trap and Target Level Update for Copper JJC
Tue, Mar 3, 12:11 PM ET, by Corey Rosenbloom

What looked like a possible bullish breakout devolved today into a trap as Copper buyers ...

March 2 Reversal Market Update and Trending Stock Scan
Mon, Mar 2, 1:31 PM ET, by Corey Rosenbloom

After forming a base support level, stocks rallied sharply this morning and continued a short-term ...

Yes Stocks can Still Fall Market Update and Trending Stock Scan Feb 27
Fri, Feb 27, 2:11 PM ET, by Corey Rosenbloom

Strangely, stock prices can actually fall and today’s session so far is a very similar ...

Three Strong Country ETFs Joining the US at New Highs
Fri, Feb 27, 1:11 PM ET, by Corey Rosenbloom

As we chart the US S&P 500 (and related ETFs) flirting with more all-time highs, ...

Feb 26 Market Can Actually Fall Update and Stock Scan
Thu, Feb 26, 2:41 PM ET, by Corey Rosenbloom

Can you believe the market can actually fall? I didn’t either! Nevertheless, today’s session is ...

Feb 25 Continuation Market Update and Stock Scan
Wed, Feb 25, 1:11 PM ET, by Corey Rosenbloom

So far, today’s session followed the “opening gap weakness, intervention bullish strength rally later” pattern. ...

John Carter Webinar Tonight! How to Generate Consistent Trading Results
Tue, Feb 24, 1:51 PM ET, by Corey Rosenbloom

I wanted to invite you to a free educational webinar from long-time trader (and clear ...

Feb 24 New Highs Market Update and Stock Scan
Tue, Feb 24, 1:41 PM ET, by Corey Rosenbloom

After the recent sideways consolidation, stocks continued their short-squeeze driven rally and “All Clear” breakout ...

9 Stocks Breaking Strongly to New 52 Week Highs Today
Tue, Feb 24, 11:51 AM ET, by Corey Rosenbloom

As the S&P 500 extends its breakout to new highs – along with the powerful ...

Buying Apple AAPL on Breakouts to New Highs
Mon, Feb 23, 2:51 PM ET, by Corey Rosenbloom

Apple (AAPL) shares broke strongly to new all-time highs today, leaving some traders thrilled and ...

Feb 23 Flat Market Update and New Stock Scan
Mon, Feb 23, 1:51 PM ET, by Corey Rosenbloom

After a powerful short-squeezed breakout to new all-time highs, stocks traded flat to start the ...

John Carter on Simple Strategies for Consistent Account Growth
Sat, Feb 21, 8:11 AM ET, by Corey Rosenbloom

Have you seen John Carter’s newest educational video? Entitled “Why I Trade Options for Consistent ...

Feb 20 Midday Market Update and Stock Scan
Fri, Feb 20, 2:11 PM ET, by Corey Rosenbloom

Today saw a repeat event where the morning started with a quick sell-off yet buyers ...

Feb 19 Weak High Market Update and Daily Stock Scan
Thu, Feb 19, 1:21 PM ET, by Corey Rosenbloom

Surprisingly, the weak new price highs continued with another stab at the upper level again ...

Feb 18 Reversal Market Update and Trending Stock Scan
Wed, Feb 18, 1:11 PM ET, by Corey Rosenbloom

Over the last couple of sessions, as I highlighted to members last night, stocks continued ...

Six Power Trending Stocks to Start the Week
Tue, Feb 17, 12:51 PM ET, by Corey Rosenbloom

As we begin this holiday week fresh from our vacation, let’s highlight six “Power Trending” ...

Feb 13 Bullish Breakout and Trending Stock Scan
Fri, Feb 13, 1:21 PM ET, by Corey Rosenbloom

As logically expected and as I highlighted to members last night, stocks continued their short-squeeze ...

Updating Amazon as it Breaks Higher and Higher
Fri, Feb 13, 12:11 PM ET, by Corey Rosenbloom

Amazon (AMZN) continued its upward pathway following the recent trend reversal and breakway gap. Let’s ...

Feb 12 Breakout and Short Squeeze Update with Power Stock Scan
Thu, Feb 12, 2:11 PM ET, by Corey Rosenbloom

The Short-Squeeze Breakout game-plan triggered this morning and the expected breakout impulse thrust price toward ...

Feb 11 Range Reversal Market Update and Stock Scan
Wed, Feb 11, 3:41 PM ET, by Corey Rosenbloom

Markets STILL are never boring! Today’s action again reminds us of that fact. A rangebound ...

Trading Crude Oil with Divergences into Key Levels
Tue, Feb 10, 11:41 AM ET, by Corey Rosenbloom

How can momentum divergences help your trading style? Simple – by providing early warning signals ...

SP500 Still Playing the Range Ping Pong Game
Tue, Feb 10, 11:11 AM ET, by Corey Rosenbloom

We’re still waiting on your breakout, Mr. Market. ...

Feb 6 Reversal Market Update and Bull Bear Stock Scan
Fri, Feb 6, 1:41 PM ET, by Corey Rosenbloom

Markets are never boring! That’s for sure. What started as a strong, bullish session has ...

Eight Stock Stocks Gapping and Trending Higher Feb 6
Fri, Feb 6, 12:31 PM ET, by Corey Rosenbloom

Intraday traders often scan for stocks that are strong and likely to get stronger so ...

February Market Structure and Trend Reference Charts for Gold Oil Stocks Dollar
Wed, Feb 4, 3:11 PM ET, by Corey Rosenbloom

Let’s step outside the noise and view a broader picture of the reference charts for ...

Feb 4 Trending Stock Scan and Market Update
Wed, Feb 4, 2:21 PM ET, by Corey Rosenbloom

Buyers extended their dominance today, though they’re meeting resistance with divergences, suggesting their bullish swing ...

Feb 3 Big Reversal Update and Bullish Stock Scan
Tue, Feb 3, 2:31 PM ET, by Corey Rosenbloom

After a lengthy positive divergence into support developed yesterday, buyers (unwilling to let the stock ...

Detailing Deflation: A Flyby of 8 Declining Commodity Charts
Mon, Feb 2, 2:51 PM ET, by Corey Rosenbloom

You’ve probably heard the increased discussion about “Deflation” in the global economy, but what does ...

Feb 2 VSpike Market Update and Trending Stock Scan
Mon, Feb 2, 2:11 PM ET, by Corey Rosenbloom

Stocks continued their sell-swing, yet we’re seeing a similar intervention or V-Spike Pattern that played ...

Amazon AMZN Bullish Surge from Big Divergence on Support
Fri, Jan 30, 1:41 PM ET, by Corey Rosenbloom

Amazon’s (AMZN) solidly earnings beat expectations yesterday, resulting in a breakout and stock surge higher. ...

Quick Lessons from Divergences and Reversals in MannKind MNKD
Thu, Jan 29, 5:31 PM ET, by Corey Rosenbloom

A reader asked me to take a look at MannKind (MNKD) and I wanted to ...

Jan 29 Reversal Update and Trending Stock Scan
Thu, Jan 29, 2:31 PM ET, by Corey Rosenbloom

After the Fed Day Wednesday, stocks simply traded down to the lower support of the ...

Surging Prices and Obvious Trend in US Treasuries TLT
Wed, Jan 28, 3:31 PM ET, by Corey Rosenbloom

It’s no longer a “stealth” movement but a blatant, obvious development that Bond/Treasury prices have ...

Average Annual Normalized VIX Futures Term Structure, 2004-2014
Wed, Jan 28, 8:11 AM ET, by Bill Luby

One graphic I post periodically that never fails to generate a great deal of interest ...

Caterpillar CAT Shatters Support: Updating New Trading Levels
Tue, Jan 27, 12:21 PM ET, by Corey Rosenbloom

Caterpillar (CAT) shares shattered support at the $85.00 per share level on an earnings miss ...

Plotting the Current Range and Planning the Future SP500 Breakout
Mon, Jan 26, 3:21 PM ET, by Corey Rosenbloom

What goes up must come down, and in the market, what goes sideways must break ...

Jan 26 Recovery Market Update and Trending Stock Scan
Mon, Jan 26, 2:51 PM ET, by Corey Rosenbloom

Stocks stalled after surging from the QE intervention announcement in Europe. However, today’s session saw ...

The Year in VIX and Volatility (2014)
Mon, Jan 26, 8:11 AM ET, by Bill Luby

This is the seventh year in a row I have offered a retrospective look at ...

Top Posts of 2014
Sun, Jan 25, 5:51 PM ET, by Bill Luby

Since I launched VIX and More some eight plus years ago, I have devoted one ...

Support, A Breakout, and Missing Out in Netflix NFLX
Fri, Jan 23, 12:21 PM ET, by Corey Rosenbloom

If you didn’t catch Netflix (NFLX) off the critical support level, and now the breakout ...

Jan 22 Euro QE Market Update and Stock Scan
Thu, Jan 22, 3:21 PM ET, by Corey Rosenbloom

Like the expected knee-jerk reaction, stocks rallied on news that the European Central Bank will ...

Jan 21 Intraday Update and Big Trend Stock Scan
Wed, Jan 21, 2:51 PM ET, by Corey Rosenbloom

What levels are important in the market right now and which stocks are the top ...

Eight Top Intraday Trending Stocks for Jan 20
Tue, Jan 20, 4:41 PM ET, by Corey Rosenbloom

Which stocks topped our algorithmic list of strongest (and weakest) intraday trending stocks today? Let’s ...

Four Strong Trends Kicking off 2015
Tue, Jan 20, 4:11 PM ET, by Corey Rosenbloom

As 2015 continues, we’re seeing persistent trends develop across key markets. Let’s take a look ...

Jan 16 Stock Scan and Reversal Market Update
Fri, Jan 16, 3:31 PM ET, by Corey Rosenbloom

After yesterday’s Swiss Franc surprise (see the “Aftermath Update” post from this morning), the US ...

Documenting the Damage on the Swiss Franc Fallout
Fri, Jan 16, 1:41 PM ET, by Corey Rosenbloom

I wanted to highlight the ‘damage’ or intense price movement on select FOREX pairs because ...

Trade Planning off the 2000 Key Level in the SP500
Thu, Jan 15, 4:11 PM ET, by Corey Rosenbloom

It’s time once again to plan our intraday and swing trades off the key inflection ...

Jan 14 Selling Market Update and Trending Stock Scan
Wed, Jan 14, 1:51 PM ET, by Corey Rosenbloom

We have yet another sell session in motion, let’s take a moment to highlight key ...

  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 - 2015, 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 over 1000 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.