Is Gold Headed to $2000?
I'd like to introduce guest contributor Ron Lembo to Ponsi Charts. Ron is the manger of Sonoran Vista Group, LLC in Scottsdale, AZ.
Commonly seen as a safe haven, speculators rush into gold when there is a sense of uncertainty in the market. We've seen plenty of that over the last three months, but will the momentum last?
Across all of the time frames displayed - hourly, weekly, and monthly - we see Gold moving to the upside. The longer the time frame, the stronger that trend appears to be.
The hourly chart (left) shows persistent buying pressure, featuring a series of higher highs and higher lows. Recent price action demonstrates selling pressure in the area near $1800.
In the center, we see the weekly chart. In this context, gold has been trending steadily higher for about a year.
The monthly Bollinger bands (right) lead us to believe that the price of gold is extended and due for a pullback.
Seasonality plays into our strategy. Gold has shown a tendency to be stronger during the second half of the year, which we are entering now.
A pullback is likely to occur around the $1800 price point, due to the price action seen on the hourly chart. Based on these charts, I'm looking to pick up some Aurum near the $1755 level.
You can reach Ron Lembo at Rlembo65@gmail.com
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