Gold looks great if you turn the page upside down.  Otherwise, one might just stay away for a while until the dust settles.  The NYMEX close for gold was $1052.80 while only an hour or two later the Globex electronic trading showed gold at $1065.  One might just wonder what goes on here.

GOLD LONG TERM

Whether gold closed at $1052.80 or $1065 does not change the long term picture.  It traded below the $1065 level and therefore triggered a bear signal from the long term perspective.  As mentioned last week, this is not a MAJOR event (from the P&F perspective) as the down side projection is only to the $975 level.  I have long learned that unless the P&F projection is for a major move (relative to the P&F parameters used) the move may not even get to the projected level so it will be interesting where this takes us before a reversal of trend is signaled.

Looking at the usual indicators the NYMEX close was below the long term moving average line while the Globex price at around 4:00 P.M. was above the moving average line.  In either case the moving average remained in an upward trend.  The long term momentum indicator is moving lower fast and is below its negative trigger line but is still slightly above its neutral line in the positive zone.  The volume indicator, although moving lower, has held up pretty well.  It is still above its lows from the previous Dec action but has dropped below its trigger line.  The trigger has not yet reversed and is still pointing upward.  The long term indicators are weakening but have not yet turned fully bearish.  The rating for now can be classified as – NEUTRAL, one level above a full bear rating.

 INTERMEDIATE TERM

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