Wednesday, January 9, 2013

Peter Brandt discusses Gold may rally

In his latest Blog Post, Peter Brandt discusses the probability of Gold embarking on another uptrend.

So, I thought I should check out what the chart for Indian Gold Futures are saying. Mr Brandt refers to a 13 week channel which would give a bullish signal if prices break out above the upper resistance line. Here is the chart:

Well, a 13 week down sloping channel is not visible on Indian Futures thanks to currency fluctuations. This is the daily price chart for MCX Near Month Futures, from Sept 12 to January 9,13. What we have is a trading range. A confirmed buy signal comes when Gold goes above 32270. Traders can use a pivot around 31180 as the first sign of bullishness. A move above this pivot could be taken as a buy inside the larger trading zone.

How will you trade this chart? Please do give your feedback. Remember, you do not have to trade it at all.


Dinesh said...

Dear Sir,
I have no technical expertise/authority to view/interpret the chart but based on my common sense, I would wait for the 32270 level ( as mentioned by you) to go long from a long term perspective. At that level, the bullish 'V' pattern will emerge. Until that is achieved, may be one can look at buying from a short term perspective with strict stop loss.

Rakesh Shethia said...

I would have already taken the trade on buy side just above the 30530 level as it has been tested twice and is the lower end of the range. This after the test of 30313 being held. My stop would be the recent pivot low at just above 30530. Target - near high of 31400. Further targets would be thought of once reached there.

Rajveer said...

Since we are at the lower end of the range, so, long can be initiated now with SL @ 30530 just below the hammer. A close above 31180 will confirm breakout from descending triangle.

sometimesbullsometimesbear said...

Some interesting developments in commodities charts. Would be nice if you could comment on them also for readers benefit. Thx.

AK said...

i would
buy at 31060.
for tgt of 32100 - 32115.
with closing sl of 30450.

Rajat said...

I will wait for price to test higher low made 3 bars before.. if it doesn't break below i'll buy .. putting a stop right below the low of that bar-- and i will wait for price to go till top of the trading range and exit... then i ll wait for a breakout to buy