Hewison Describes Energy Fields on Gold Chart

Jun 29, 2009: 10:49 AM CST

In a unique chart interpretation, Adam Hewison of Market Club released a video today that describes what he calls “Energy Fields” on the Gold weekly chart and what they might mean for the next move in gold.  It’s a free four-minute video that is applicable to all who follow or trade gold.

From what I can tell, Adam is using the principle “Price Alternates Between Periods of Range Expansion and Contraction” to indicate that markets “build energy” during periods of contraction (highlighted in the chart above) and then release it during expansion moves (which are the beautiful trend moves we as traders are hoping to capture).

These reflect classic price breakout plays where you buy (or short) after an observed period of contraction (consolidation) in price.

Adam describes this technique and then discusses why he feels the current “Energy Field” is primed for a move “much higher” in gold prices going forward, particularly if the resistance at $1,000 is broken soon.

Corey Rosenbloom, CMT

6 Comments

6 Responses to “Hewison Describes Energy Fields on Gold Chart”

  1. tom Says:

    Good overall view Corey, but r u recommending we buy gold right here.

  2. Patrick Says:

    Yeah this synches with my wave count analysis as well.

  3. Corey Rosenbloom, CMT Says:

    I'm bullish gold, but for other reasons I've mentioned in prior posts on the blog. I'd say the ultimate buy comes when/if we break above $1,000.

    It's so funny – Adam and I both have different methods – but we often come up with similar conclusions many times. Or we'll post/do a video either on the same day or one day apart.

  4. Corey Rosenbloom, CMT Says:

    Same here – but Adam has a way of explaining ultra-simple concepts that I often miss by focusing on more advanced technicals.

  5. Bob Says:

    Yes…. the inverted H&S pattern… That $1,000 barrier is historically significant and a large whole number; it will be very significant if price can break through to the upside… and the price projection does indicate the potential for a sizable move. Can't you just taste it,… or is that greed?

    Their needs to be a catalyst to get gold through and above the neckline. Will it be one significant event or the “straw that breaks the camels back”???

    If you consider things, we've been seeing a compounding of variables that are weighing on global currencies, equity markets and economies. One more little stumble and a cascading flight to quality may just occur. Right now, I don't feel the fear.

    This pattern has formed very slowly too. One shouldn't feel an urgency associated with acting too quickly. Some times it's best to wait for a pattern to resolve. However, if you feel compelled to take a position, set clear stops. There are pro's playing gold; head fakes occur frequently and price often pierces trend lines and obvious resistance / support levels.

    Be safe, like fort knox!

  6. Bob Says:

    Yes…. the inverted H&S pattern… That $1,000 barrier is historically significant and a large whole number; it will be very significant if price can break through to the upside… and the price projection does indicate the potential for a sizable move. Can't you just taste it,… or is that greed?

    Their needs to be a catalyst to get gold through and above the neckline. Will it be one significant event or the “straw that breaks the camels back”???

    If you consider things, we've been seeing a compounding of variables that are weighing on global currencies, equity markets and economies. One more little stumble and a cascading flight to quality may just occur. Right now, I don't feel the fear.

    This pattern has formed very slowly too. One shouldn't feel an urgency associated with acting too quickly. Some times it's best to wait for a pattern to resolve. However, if you feel compelled to take a position, set clear stops. There are pro's playing gold; head fakes occur frequently and price often pierces trend lines and obvious resistance / support levels.

    Be safe, like fort knox!