Gold Breaks MAJOR Ascending Trend Line

[The Machine]

Looks like we might see $1,589 before US market closes today at the rate Gold is dropping!

I've been watching ..... i'm not surprised, your normally right on the money but im still not selling lol

[20Mil]

I've been watching ..... i'm not surprised, your normally right on the money but im still not selling lol

LOL

Bullion buyers don't really have anything to worry about. This is more of a technical analysis for traders who use leverage. A move down of $40 trading 1 standard lot is quite a bit of money... :D/> ($4k)

Edited February 15, 2013 by 20Mil

[20Mil]

Gold has now broken the $1645 level! , Next area of interest is $1625. If that level breaks then $1589 is in the cards. Next is $1647 and then below that is my mid-term target of $1526.

What if $1,526 is broken and confirmed? Well then watch out below as Gold will fall into the abyss heading lower down to $1,310 or so but that is pure speculation at this point.

I expect $1,625 to hold and possibly provide a bounce up to test the ascending TL again after which a further decline to $1589 and then eventually $1525 in the coming months.

Gold Chart - Areas of support

Gold Chart (2)

 

 

Price ripped right through my 3rd area of support which was at $1,589!  LOL  WOW!  Look at Gold move...

 

Next "possible" area of support is $1,547.  However, I don't expect this to hold so $1,525 is probably going to be hit in the coming weeks.  

 

Like I said in the original post if $1,525 is broken and confirmed on a weekly chart then watch out below!!!! 

 

By the way, when looking at a 10 year chart you will notice that price has broken below the 10 year channel which is also a MAJOR problem for those who are bullish on precious metals.  

 

Weekly Gold Chart Updated

[20Mil]

This month has been good!  Over $10k in profits shorting Gold  

[Thaiexpat]

Thanks for your insight. You mentioned a Managed FOREX acct. Can you make any recommendations? This is completely out of my league. I tried giving it a shot some time back, but as I said in earier posts: I'm very good at losing money. I can respect your opinion since you claim (in the other 1000:1 topic) that you are doing very well doing what you do. I am a doc and have NEVER (either in the US or elsewhere) cleared 20K per month. With that, I could retire in a year!! Dunno, just asking....Cheers

[elmstreet61]

my advisors are tellin me that gold will peak soon and might then go down as low as $1400 but only for a very short time. Now when it's nice and low, gold will be a big BUY....bigger than ever before...so watch this space!!

Aussie gold stocks are at bargain basement levels...they are all screaming BUY right now.

Edited February 21, 2013 by elmstreet61

[Rockymtnhi]

Those shorts on gold/silver are doing well.  The HUI has broken support which sets up gold to drop as low as $1300.  The equity mkt is shaping up for a huge drop.  It could be hang on to your hat time.  Fasten seatbelts and place your tray tables in the upright position.  When it's done you want to buy with both hands.

[20Mil]

Thanks for your insight. You mentioned a Managed FOREX acct. Can you make any recommendations? This is completely out of my league. I tried giving it a shot some time back, but as I said in earier posts: I'm very good at losing money. I can respect your opinion since you claim (in the other 1000:1 topic) that you are doing very well doing what you do. I am a doc and have NEVER (either in the US or elsewhere) cleared 20K per month. With that, I could retire in a year!! Dunno, just asking....Cheers

 

 

I really don't want to make any recommendations. Hope you understand.

my advisors are tellin me that gold will peak soon and might then go down as low as $1400 but only for a very short time. Now when it's nice and low, gold will be a big BUY....bigger than ever before...so watch this space!!

Aussie gold stocks are at bargain basement levels...they are all screaming BUY right now.

 

 

I am just basing my next target levels off of known support levels using a weekly Gold chart.  Nothing really significant about 1400 from what I can tell.  Obviously we need to reach $1,525 first. I'm currently flat on Gold trades as I locked in profits earlier today.  Waiting for next setup...

Those shorts on gold/silver are doing well.  The HUI has broken support which sets up gold to drop as low as $1300.  The equity mkt is shaping up for a huge drop.  It could be hang on to your hat time.  Fasten seatbelts and place your tray tables in the upright position.  When it's done you want to buy with both hands.

 

 

Yep!  Made a little over $10k in the past week and a half just with Gold alone! I also see $1,300 in the coming months. Definitely don't want to try and catch a falling knife so it's best to wait for a definite bottom using weekly support areas and also keeping an eye on price action. Plenty of opportunities everyday, one just needs to be trained to see them!  

 

Not sure if you trade currency but if you do here is a tip:  GBP/USD has broken a 4-Year Symmetrical Triangle to the downside and has also broken through some pretty significant support levels on the weekly chart. Could be headed lower to 1.44 in the coming weeks / months.  After that it is 1.41.  Exciting trending times are back for GBP/USD as well as JPY cross pairs!  Also, EUR/GBP has broken to the upside but I don't really like that pair...

 

There is also an inverse head and shoulder pattern on the Weekly chart for EUR/AUD.  Might see a break higher to 1.40.  That is about a 1200 pip move so there is some serious money to be made.  Need to wait for a retest of 1.28 OR if you want to play it safe wait for a breakout above 1.33.  

Edited February 21, 2013 by 20Mil

[Rockymtnhi]

I really don't want to make any recommendations. Hope you understand.

 

 

I am just basing my next target levels off of known support levels using a weekly Gold chart.  Nothing really significant about 1400 from what I can tell.  Obviously we need to reach $1,525 first. I'm currently flat on Gold trades as I locked in profits earlier today.  Waiting for next setup...

 

 

Yep!  Made a little over $10k in the past week and a half just with Gold alone! I also see $1,300 in the coming months. Definitely don't want to try and catch a falling knife so it's best to wait for a definite bottom using weekly support areas and also keeping an eye on price action. Plenty of opportunities everyday, one just needs to be trained to see them!  

 

Not sure if you trade currency but if you do here is a tip:  GBP/USD has broken a 4-Year Symmetrical Triangle to the downside and has also broken through some pretty significant support levels on the weekly chart. Could be headed lower to 1.44 in the coming weeks / months.  After that it is 1.41.  Exciting trending times are back for GBP/USD as well as JPY cross pairs!

Congrats.  Sounds like you've got a handle on things.  I've done well too.  About $24k in past 60days.  Not trading currencies which do provide excellent opportunities.  The yen has dropped 17% in the past few weeks.  Not good for their public but good for their corporations like Toyota whose stock has risen since.  GM and Ford are not liking this yen devaluation one bit. 

[20Mil]

Congrats.  Sounds like you've got a handle on things.  I've done well too.  About $24k in past 60days.  Not trading currencies which do provide excellent opportunities.  The yen has dropped 17% in the past few weeks.  Not good for their public but good for their corporations like Toyota whose stock has risen since.  GM and Ford are not liking this yen devaluation one bit. 

 

 

Nice work!      

It's funny you mentioned Toyota and the American Car companies.  Just received this email earlier today: Goes hand in hand with what you just mentioned.  

 

 

The Currency War Could Turn Into an Auto War

By Sean Hyman, Editor of Currency Cross Trader

 

 

Governments have always been a bit sneaky. They tend to hide what they can from the public. And I’d say the outcome of the latest G-20 meeting this past weekend was a great example of this. 

This group of 20 finance ministers and central bankers from the world’s top 20 economies basically spent a ton of taxpayer money to jet over to Moscow to put together a statement that more or less said: “You can continue to devalue your currency… just don’t talk about it.”

 

In other words, feel free to do most anything. Just don’t let the public in on what you’re doing. 

It’s a strategy that worked fairly well in the U.S., so the rest of the G-20 nations can now simply follow our example. Meanwhile, our Federal Reserve can continue to devalue our currency and the public still doesn’t get it. 

 

 

How you’ve Already been Affected by Currency Wars in the Past

 

The American standard of living continues to erode. Americans just don’t seem to realize the impact.

In fairness, there have been a number of mechanisms put in place to disguise what should be obvious. 

For example, when I was growing up, people had car loans for two to four years. These days they have to stretch that out for up to seven years. 

The food you buy at the grocery store costs more because you get a smaller quantity for a similar amount of money. 

Also, what one income-earner used to be able to do in the 1960s and early 1970s, now takes two income-earners to produce a similar lifestyle. Yet all of these things are the result of the currency being undermined by the central bank with the full permission of the government.

 

 

Japan takes its lead from the Fed

 

Well, it seems to have worked so well for the U.S. that Japan is now trying it. In fact, since last October, the Japanese have devalued their currency by almost 17%!

That means within mere months, it now will take 17% more money to obtain the same stuff as just months ago!

Now this currency war could soon become an auto war. 

A quickly devaluing yen (that just got the green light to devalue further) will give Toyota, Honda, Nissan, to name a few, a decisive advantage that they didn’t have before. 

In fact, Honda has openly admitted that for every one yen dropped against the dollar, their operating income gains by 16 billion yen a year. And for every one yen dropped against the euro, their operating income jumps 1 billion yen per year. (1 billion yen = almost $11 million)

For Toyota, the numbers get even larger. For every one yen move against the dollar, it can swing their earnings by 120 billion yen per year. Let’s take a look at the chart below and I believe you’ll see the HUGE inverse correlation of Toyota to the yen.

 

Yen Peaks = Toyota Bottoming

See larger image

 

As you can see, there’s probably not even 30 days difference from when the yen tops and Toyota bottoms. 

In fact, further evidence of how the yen affects these Japanese car stocks, like Toyota, can be seen when both form the same inverse technical patterns. 

The yen formed a bearish head and shoulders pattern and Toyota formed a bullish, inverse head and shoulders pattern at the same time. 

Then when the yen completed its head and shoulders pattern by breaking below its black neckline, it dropped like a rock… which caused TM to complete its pattern before it took off like a rocket. 

GM (GM) and Ford (F) cannot be happy about this at all. At the quick pace that the yen is falling and the permission that it just got collectively from the 20 biggest economies in the world… it’s probably going to get a lot uglier from GM/Ford’s perspective before it gets better. 

A way to profit from the currency war is to take advantage of the edge that these Japanese car companies have by the ever-weakening yen. 

One great way to do this is by buying Honda (HMC). 

Toyota was the first to respond to the yen’s fall, and it has already taken off from its completed head and shoulders pattern. 

But, as you can see from the chart below, Honda’s big move is still to come. It’s trailing behind Toyota’s move which gives traders another shot at the devaluation of the yen through Honda’s stock.

 

Honda: The Next Way to Profit from the Currency War

 

See larger image

 

Honda has formed the same pattern as Toyota, but it’s just now completing its head and shoulders pattern. Therefore, its biggest move is still ahead. 

So check out Honda’s stock. As the currency war continues to escalate,

Honda will have an edge. Look for GM and Ford to get ticked about it in the months ahead as an auto war could emerge. 

Have a nice day!

Sean Hyman

Editor, Currency Cross Trader

 

 

 

 

Rocky,

 

Mind me asking what you trade if not currencies?  Stocks?  Futures?  Commodities? 

 

Just curious...

Edited February 21, 2013 by 20Mil

[MITCH10]

people who invested in cows did better .. cows multiply ..

yea they multiply but they don't add up!!! case in point.... twenty years ago when I got into the cattle business, calves sold for 80 - 85 cents per lb., farm fuel was 80 cents a gallon and to fertilize a ten acre pasture cost $250 - $300, today calves have doubled $1.5 - $2.00, fuel has gone up 4 to 4.5 times, and to fertilize that same ten acres cost about $1300. Also corn has gone from less than $2 per bushel to $8-10 (thanks ethanol). So the cattle rancher is taking it in the shorts!

[20Mil]

yea they multiply but they don't add up!!! case in point.... twenty years ago when I got into the cattle business, calves sold for 80 - 85 cents per lb., farm fuel was 80 cents a gallon and to fertilize a ten acre pasture cost $250 - $300, today calves have doubled $1.5 - $2.00, fuel has gone up 4 to 4.5 times, and to fertilize that same ten acres cost about $1300. Also corn has gone from less than $2 per bushel to $8-10 (thanks ethanol). So the cattle rancher is taking it in the shorts!

 

 

I don't think DontLop figured in ANY of the expenses involved in the process of raising cattle.  LOL  

[Thaiexpat]

I really don't want to make any recommendations. Hope you understand.

 

 

I am just basing my next target levels off of known support levels using a weekly Gold chart.  Nothing really significant about 1400 from what I can tell.  Obviously we need to reach $1,525 first. I'm currently flat on Gold trades as I locked in profits earlier today.  Waiting for next setup...

 

 

Yep!  Made a little over $10k in the past week and a half just with Gold alone! I also see $1,300 in the coming months. Definitely don't want to try and catch a falling knife so it's best to wait for a definite bottom using weekly support areas and also keeping an eye on price action. Plenty of opportunities everyday, one just needs to be trained to see them!  

 

Not sure if you trade currency but if you do here is a tip:  GBP/USD has broken a 4-Year Symmetrical Triangle to the downside and has also broken through some pretty significant support levels on the weekly chart. Could be headed lower to 1.44 in the coming weeks / months.  After that it is 1.41.  Exciting trending times are back for GBP/USD as well as JPY cross pairs!  Also, EUR/GBP has broken to the upside but I don't really like that pair...

 

There is also an inverse head and shoulder pattern on the Weekly chart for EUR/AUD.  Might see a break higher to 1.40.  That is about a 1200 pip move so there is some serious money to be made.  Need to wait for a retest of 1.28 OR if you want to play it safe wait for a breakout above 1.33.  

 

Sorry, I wasnt asking you to make a recommendation for a play, but rather a company/firm that does this. Is that what you meant? otherwise, sorry, I dont understand.

[sandyf]

"A quickly devaluing yen (that just got the green light to devalue further) will give Toyota, Honda, Nissan, to name a few, a decisive advantage that they didn’t have before. "

Short memories, about 5 years ago the yen was about 120 to the dollar.

[20Mil]

Sorry, I wasnt asking you to make a recommendation for a play, but rather a company/firm that does this. Is that what you meant? otherwise, sorry, I dont understand.

 

Do your own research and put your own time, effort, and energy into making yourself wealthier. Don't rely on others for your success. Thanks!

[Thaiexpat]

Do your own research and put your own time, effort, and energy into making yourself wealthier. Don't rely on others for your success. Thanks!

Thank you for your reply. For the record, as you claim in the other post-I WOULD NOT blame anyone for a failure in MY decisions with my money. Thank you for judging me. I never judged you. You claim (and I believe you, by-the-way) that you are an expert in a particular area-that is WHY I asked you for your expert opinion. I read your other recommendations from the HYIP posts which you make recommendations. But, I guess that is different.  Now, since you are "stepping away" from DV, ok, again, I thank you for your input. I didnt expect much and I see I am not disappointed. I recall only asking for recommendations, not a "holding of my hand".( Maybe it is different. Sorry, English isnt  my mother tongue) Yes, I will Google things, as you put it, I learn on my own. Ultimately, no one will take care of my money better than me.  I hope that someday I will be in a position of making money rather "easily" (I know it took time, just like becoming a doctor). And, for the record, I rather enjoyed your insight/posts. They were enlightening and very informative. Thanks again.