Bursa Maniac

Recent daily gold chart mirrors the chart pattern from year 1968-2000. But the bull is back?


We had enjoyed some market profits from our macro-forecast in Spot Gold prices. In last report, we covered the prediction of market moving down from 1750.00 to 1660.00 though the actual low reached 1672.00 regions. In this snippet, we shall continue to outline the forecast of both Spot Gold and Spot Silver prices while moving towards end November.

The market focus in early November was the winning election of Obama as U.S. President. Precious metals rattled up quickly from the bottoms stated in above paragraph owing to more widespread expectation of weaker dollar in the wake of stimulus favored by the President since 2009.

However, we have been following our technical studies on PowerWave Trading TM and the market psychology on tracking the market trend. In our opinion, they could be overbought in such a short time if the prices are pushed up further. The eventual outcome will be another draw down again that traps the bull traders. 

While Spot Gold prices have been recovering from 1672.00 levels to current 1740.00 levels, we reckon a good opportunity to pick short entry at the topside range of 1745.00 - 1750.00 regions if you encounter this prices before 21 November. Likewise, Spot Silver has been reversing up from 30.660 levels to 32.300 levels since early November. We prefer to pick short entry from 33.450 - 33.500 areas for a quick downfall towards the end of this month.

On the hind side, we predict the Spot Gold prices will trade in mild bearish sentiment from 1750.00 levels down to 1690.00 areas again before the month shifts to December. In the same period, Spot Silver is prone to fall back from 33.500 levels to 31.000 areas. Abandon your short-view for both markets unless the markets break free from the resistances mentioned herein.


Bear in mind that this is only a temporary bull trap for making a eye-washer to the long traders. The coming December could be the beginning of a new up run in both Spot Gold and Silver markets as both instruments usher into 2013. Good luck and make your last shorting profits this month before re-planning to establish your long portfolio in commodity markets!