News, analysis and commentary for gold traders and investors

"Be Right - Sit Tight"

Jesse Livermore
Gold Market Wire... Gold Market Wire... Gold Market Wire
Gold Market Wire... Gold Market Wire... Gold Market Wire
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Gold Market Wire

News, analysis and commentary for gold traders and investors

Gold Market Opening

Gold Channel Review

July 6, 2020 - (Gold Market Wire) - As we start the new week, and, now in earnest, the new quarter, it's time to the look at Gold's Channel markers as they have developed. We'll start with a medium-term view, with two rising overhead resistance lines of note:

this channel(s) has been solid for three months now

This is the intermediate configuration. As we can see, we're almost getting to the 'break-out or drift back' scenario. Gold finished the quarter on a very strong note, of that there is no doubt, but it will need to make a vault over both rising resistance lines to re-galvanize the bullish momentum. Here's the close up of the exact same chart:

bouncing along the top

All in all, a tough place to establish a position. If we keep skidding along the top of the resistance, the odds favour a break-through. But for right now, we remain on the sidelines. The active front month futures contract had a high close of $1800.5 last week, high-ticked up to $1804 and then backed off. A "stop-popper" to get everyone long at a high point? Perhaps. Against this, we should note that July 1 notched up 263,000 contracts on the COMEX's August contract. While some of that was doubtlessly a close out for the long holiday, we should keep in mind that big volume has worked as an excellent indicator for higher prices - for many months and even years now. We stand informed of that while we wait for developments.

Today should be an interesting session. Although we are inclined, technically, to see a drift lower, the marching in Georgia of militant, armed African-American groups certainly lends an undertone of tension to the market. America is heading into outright civil conflict soon, and little seems capable of stopping it. The outcome of the US Presidential elections are almost worthless now, as neither side of the political divide has any intention of respecting the results if their side loses. Moreover, it now appears that the militant black community has no interest in the election anyway. They are calling for their own nation-state. The Federal government is being challenged and is looking weak. That is fuel for Gold.

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