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

  • Other news: News from PR Newswire
| More

Gold Showing EMA Compression with Targets

Sat, Feb 9, 1:42 PM ET, by Corey Rosenbloom

I’m a big fan of so-called “EMA Compression” patterns because they often set-up breakout opportunities from clear reference levels.

Let’s take a look at the Daily Chart “EMA Compression” pattern in gold and what levels are important in the near future.

The main idea here is to recognize the price compression or consolidation between the falling 50d EMA (which has held as resistance since December) and the flat 200 day SMA.

The current falling 50 day EMA rests at $1,680 while the flat 200d SMA resides at $1,665 (Friday’s low).

I also drew a rising blue short-term trendline intersecting the $1,665 area above (another short-term falling trendline also intersects $1,680).

In terms of structure, due to a series of lower lows/lower highs and a bearish EMA structure, price remains in a short-term downtrend established since November 2012.

However, it’s often best from a trading standpoint to treat potential future breakouts from a neutral perspective instead of trying to predict which direction price will break.

Breakout trades profit from a quick “feedback loop” or rush of activity driven in part by one side of the market being caught off-guard and thus rushing to exit their (now) losing positions.

For a short period of time, both sides of the market are “doing the same thing” for very different reasons (in the case of an upside breakout, buyers would be putting on new positions while sellers may be taking off old positions at a loss – buying to cover).

The hourly chart provides a more detailed look at the short-term levels and potential future targets on a breakout:

Again we see the blue compressing trendlines forming a “triangle” pattern from $1,665 to $1,680.

A breakthrough beyond one of these levels could lead to a quick impulse toward the prior inflection high at $1,700 or $1,640 (levels for intraday traders to target).

Beyond that, a firm breakthrough above $1,700 would trigger a short-term trend reversal as price creates a higher high after a higher low and would trade above the daily EMAs.

A continuation of the move above $1,700 could target the $1,750/$1,760 prior swing high from November.

On the other hand, a ’surprise’ breakdown under $1,640 could set up a sudden play toward the $1,600 prior support from August.

Take these levels and potential outcomes into your trade planning and analysis.

For educational reference, here is my prior post on “EMA Compression” that occurred in AAPL (you can view the outcome now).

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: "Breakout" Definition
SDI Glossary: "price" Definition
SDI Glossary: "Finance" Definition
This Article's Word Cloud:   Compression   Corey   November   above   adsbygoogle   afraidtotrade   also   another   blue   both   breakout   breakthrough   could   educational   falling   flat   from   future   here   high   higher   levels   look   loop   lower   market   often   pattern   positions   potential   price   prior   quick   reference   rushing   short   since   structure   target   term   that   these   toward   trade   trades   trendline   view   which   while   would

| 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 »

Gold Showing EMA Compression with Targets | 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.