BarroMetrics Views: Gold 2014-01-97
Gold has had a lot of bad press lately. And, in my view, undeservedly so.
Figure 1 shows a 12-period swing on a monthly chart (Yearly trend) (Figure 1). We see a retracement just below the 50% retracement level at prior support. This is supported by the weekly chart where we are seeing a possible bounce near the Primary Sell Zone (Figure 2).
I have included a Daily chart because I want to show the reversal bar on Tuesday, Dec 31 (Figure 3). On the daily chart, the bar looks so-so. But on the 60-min chart (Figure 4), we clearly see the strong rejection of the 1180 to 1885 area. We also see yesterday’s dramatic sell off and rejection.The last time I saw this sort of price action was in the 30-year bonds. on Dec 23.
What I see is a sideways market heading for Primary Sell Zone 1435.7 to 1423.8. Acceptance above 1485.80 suggests we have a valid upside breakout.
FIGURE 1 12-month Gold
FIGURE 2 13-week Gold
FIGURE 3 18d-day Gold
FIGURE 4 60-min Gold