With gold nearing the end of the short term wash-rinse-repeat cycle, que the hit pieces. This one’s particularly bad for so many reasons…
Check out our tag of Hit Piece to see the several attempts at bashing gold. The sheeple generally fall for it hook, line and sinker, because, you know, the average person is probably more of a Zombie than the analyst claims gold is in the latest piece.
For the record, I liked zombies before it was cool to like zombies. Now, I don’t like them so much anymore. I did make it through mostly two seasons of The Walking Dead, however. And also for the record: No – zombies do not run. If it’s running, it’s not a zombie.
This latest MSM anti-gold propaganda comes from perma-stock market cheerleader CNBC, written buy a Guppy. Seriously, that’s his name. Guppy.
Gold moves into a ‘zombie state’ as the usual spurs fail to impress
Let’s break it down play-by-play:
The defining feature of the gold price chart is that it has taken so long to go nowhere. Gold appears to have slipped into a zombie state, largely unmoved by a weaker dollar, or interest rate predictions or any world crisis.
That’s called precious metals price suppression there Mr. Guppy. It’s what we are up against. If you don’t understand that, maybe you should read it yourself from the U.S. Treasury Department website.
We call it “the cartel”, which is a combination of the global puppet masters handling their governments, central banks and their actors, all working together to suppress the price of gold and especially silver.
Gold has gone nowhere because we’ve been in a grueling, constant wash-rinse-repeat cycle and currently it’s working, albeit they needed a little help from the cryptos last year to steal the interest away from real gold.
Gold shows weak trending activity and poor support levels. There are short-term trading opportunities, but the chart is a long way from more optimistic “goldbug” predictions to a return to previous highs above $1,600.
Uh, those highs are above $1900 Mr. Guppy. Why not checking your chart before typing? Oh wait. This is an anti-gold hit piece. Carry on.
Glad you didn’t say weak “trading” activity, because 2017 was the largest trading volume year on record.
Gold has seen a broad trading band between $1,210 and $1,350. The breakouts above $1,350 in July 2016, and more recently in September 2017 proved to be weak. There is simply not enough strength in the trend to keep prices above the $1,350 level.
Here’s the reality. I’ll let the chart speak for itself:
The current consolidation near $1,350 offer a little more hope, but it is not a strong breakout. The consolidation activity is not using the $1,350 level as a support and this is a bearish signal.
A pre-requisite for any anti-gold propaganda is a heaping portion of crap washed down with some Hateraide. “It’s not a strong break out” starts the heaping portion crap, then bring on the Haterade with “bearish signal”.
Besides, you’re wrong again: The current consolidation is between $1320 and $1340. We get it. You’ve got to prove your point, so the failure from a higher consolidation is bearish.
C’mon man, graduate from kindergarten magic tricks.
Despite this weakness there are two bullish features in the chart that suggest a slow breakout may develop. The first bullish feature is the way prices have generally clustered in the upper half of the trading band since September 2017. Gold prices have not tested the lower edge of the trading band near $1,210 since July 2017. This gives an upward bias to the price activity.
Throw in some thing nice to say? Or is it?
You see, anybody other than the sheeple who tune into CNBC traslate something hanging around the upper band, be it a range, bollinger bands, RSI, etc, understand this is actually a bearish indicator.
The second bullish feature is the steady separation in the long-term group of averages in the Guppy Multiple Moving Average indicator. This shows a reasonable degree of investor buying.
Wonderful. Proprietary gold price indicators that nobody’s ever heard of.
This is not a strong trend. In December 2017 the price dropped below the long-term GMMA. This shows that GMMA investor support is not strong. The danger is that the GMMA will not act as a support level if there is a pullback in the gold price. This is why the uptrend is weak.
Ahh. Now we’re talking. Since we’re not sure what gamma is in the sense that you state as GMMA, thanks for letting us know it’s showing the trend as weak and support may not hold.
Next we get one of his charts:
How pretty. Reds, purples, greens, and blues.
Here we see how he gets to his $1210 range, but I wouldn’t waiting on a dip down to $1200 cause It most likely won’t come.
But hey, he’s gotta bash the yellow metal, right?
Currently there is a high probability the gold price will retreat from $1,350 and retest support around $1,290. This is the short-term outlook and it offers short-term retreat and rally trading opportunities.
Ya don’t say. We would have never figured that out.
We use the ANTSSYS trade method to extract good returns from this behavior.
Is that the Ain’t Shit System? I think I’ve heard of that.
The long-term outlook is mildly bullish. The general upwards bias in the gold price starting in January 2017 suggests a weak and slow uptrend with a long-term target near $1,490. This is a six to twelve month outlook. This target is calculated by measuring the width of the trading band and projecting it upwards.
“Mildly bullish”. Nothing to get excited about here folks. Throw all other analysts technicals out the window and ignore all fundamentals. Gold’s going up, but only a little.
A rise to this level is most probably a slow and unstable move with many tests of GMMA support.
Just to re-iterate the last point: It’s gonna be “slow and unstable” folks.
So now you know.
– Half Dollar
About the Author
U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.