Hewison Video Updates on Gold Market Aug 6

Aug 6, 2009: 12:40 PM CST

Adam Hewison released another 4-minute quick video update on the recent ‘bullish strength’ in the Gold Market boldly entitled “Has the Gold Bull Finally Arrived?

Adam notes that the recent consolidation in prices is building strength, and the recent support off Fibonacci levels (bounce) was a bullish sign that could target and perhaps break the $1,000 level.

I’m not quite on the “Gold Bull” camp yet – I will need to see a clean break above $1,000 to get bullish, as mentioned in my prior gold update entitled “Two Competing Weekly Patterns in Gold.”  Adam is of the opinion that a bullish Inverse Head and Shoulders could be completing soon which would be confirmed with a break above the neckline at $1,000 per ounce.

Consolidating Triangles – which is what we are in now as the dominant short-term pattern – have a tendency to break either way, and it’s often best to wait until that break occurs instead of trying to guess the breakout direction unless we’re aggressive traders or perhaps are trading on fundamental reasons beyond the technicals.

As a bonus, here is a “Chart Art” arc chart of the @YM (mini-gold) prices which shows valid arc levels going back to the recent past and swinging forward into the future – gold has broken out time-wise from these arcs drawn off the first impulse up off the late 2008 lows:


(Click for full-size image)

I will be discussing the Monthly, Weekly, and Daily structure of gold in much more detail in this week’s Intermarket Technical Analysis Report (please visit the Premium Section for subscription and more information).

Corey Rosenbloom, CMT

7 Comments

7 Responses to “Hewison Video Updates on Gold Market Aug 6”

  1. Dan Says:

    Simply put, if you want a fundamental reason gold will not breach over the previous high of $1007.70: the world is not coming to an end. If you want gold to hit over $1000 you are wishing for an apocalypse. The US dollar has been absolutely slaughtered and if anybody noticed that lol we should be at $2000 already. BTW Good luck getting buyers to part with $1000 an ounce. You want the world to be screwed bring on the $1000 gold.

  2. Corey Rosenbloom, CMT Says:

    Dan,

    I tend to agree with you. I'm actually not bullish gold but would turn bullish on a breach of $1,025.

    That would create major panicky headlines if gold were to rise above $1,000 and I don't think the US Government would prefer that.

    That's probably why we're seeing this back and fill long-term consolidation – between the hyper-inflationists and the “everything actually is ok” people (as well as the deflationists such as Mr. Prechter).

  3. Dan Says:

    Hi Corey,

    I totally agree with your thoughts. I am not bullish on gold but I love trading it, especially the short side. But in my mind its just tradable garbage.

    You have a great website. Keep up the great work.

    Cheers,
    Dan

  4. Dan Says:

    Looks like buyers are scooping up US $ in a big way today. Not good news for gold

  5. Patrick Says:

    I used to be a gold head but I´ve recently been trend following silver since it has, by this contrarian yardstick, a high Beta and lower Vega. Also the Gold/Silver ratio is way oversold.

    I reckon it´ll go through a wave 4 on the 3-hr scale next week before sailing onward, but I´d love to see your technical analysis on that market.

  6. Dan Says:

    Looks like buyers are scooping up US $ in a big way today. Not good news for gold

  7. Patrick Says:

    I used to be a gold head but I´ve recently been trend following silver since it has, by this contrarian yardstick, a high Beta and lower Vega. Also the Gold/Silver ratio is way oversold.

    I reckon it´ll go through a wave 4 on the 3-hr scale next week before sailing onward, but I´d love to see your technical analysis on that market.