Gold holds up despite Friday’s US$ pop: Gold & Gold stocks.

Gold has been on a bullish 'Flight to Safety' run for the last three weeks and during this time I have received three TC LONG signals and noted a few wedge/triangle breakouts. Friday's economic data supported the US$ and enabled the US$ index to bounce up off support but Gold, whilst it pulled back a bit, has held up pretty strongly. This run on Gold has helped some Gold stocks to carve out bullish moves as well. In this post I take a look at the charts of Gold and some Gold stocks/ETFs.

Gold bull

Gold 4hr: The most recent TC LONG signal is still open for now after yielding over 500 pips but price is currently consolidating again within another triangle under the $1,250 S/R level. Key support levels below current price include the $1,200 level and the broken wedge trend line near $1,120 with one or both of these being a potential target for any pullback move. Watch the 4hr chart's triangle trend lines for clues as to the next move here:

Gold4hr

Gold daily: the potential pull back zones are noted on the daily chart:

GoldDaily

Gold weekly: price action has been bullish for the last three weeks and made a bullish-reversal descending wedge breakout at the end of the previous week. Gold has achieved a further milestone this week by printing the first weekly candle close above the Ichimoku Cloud in over three years and, whilst no guarantee of anything, it is something to celebrate! The top of the weekly Cloud is aligned with the $1,200 level and so I would anticipate that this level, at least, might be tested before any possible continuation. The two possible pull back targets are highlighted on this chart. Note also that the 61.8% fib retracement level for this three year swing low move is up near the whole number level of $1,500. That would be an obvious target for any bullish continuation move:

GoldWeekly GoldWeeklyCloud

Gold monthly: last month's bullish-reversal Morning Star pattern was sure on the money!

GoldMonthly

Summary: Gold has made a bullish breakout from a long-term wedge pattern and has made a new weekly close above Ichimoku resistance. US$ weakness and Flight to Safety activity created the perfect storm for this bullish move on Gold and its fate from will most likely be determined by these same two factors. I will be watching the recent 4 hr triangle for clues about the next directional move with Gold and then looking for signs of the following:

  • any pull back to possibly test the broken S/R levels of $1,200 and $1,120, however, a failure of both of these support levels would undermine the bullish wedge breakout.
  • any continuation move up to the $1,500 S/R level.

Some other charts to ponder:

GC weekly: a bullish wedge breakout here too:

GCweekly

GLD: Gold ETF: this has printed a bullish weekly wedge and Cloud breakout:

GLDweekly GLDichi

GDX weekly: Gold Miners ETF: A close and hold above $20 would clear the Cloud:

GDXweekly GDXichi

GDXJ weekly: Gold Miners Junior ETF: a close and hold above the weekly Cloud would be encouraging:

GDXJweekly GDXJichi

ABX Barrick Gold weekly: a close and hold back above $15 would be bullish:

ABXweekly ABXweeklyCloud

DGP weekly: Double Gold ETN: looks bullish already but a close and hold back above $30 would be rather convincing:

DGPweekly DGPweekly

GG weekly: GoldCorp: watch for any channel breakout here:

GGweekly GGdaily

KGC weekly: Kinross Gold: this has printed a bullish Ichimoku Cloud breakout but is still under a bear trend line for now:

KGCweekly kgcichi