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Gold entering a bull run to $1000.00.

Posted by Adrian on July 16, 2008

As discussed in World Crisis scenarios for the 21st century – Worldwide economic depression (update 15) and The Bear Market. Depressed banking stocks dragging indexes lower, the global banking stocks have crashed and will continue to become depressed. This inevitably has shifted from the banking liquidity crisis of the last six mths, now too an insolvency issue on a large scale. In other words, it’s highly likely a lot of US banks will go bankrupt and disappear of the face of the earth.

The global credit crisis now entering into large scale bank default problem. With most global stock indexes in bear markets or close to bear market territory. Global stocks, sans China, have essentially collapsed. Because what was a relatively sudden decline within the 6mth period, no ‘bottom’ in the falling indexes dare be called at this point. So, funds need somewhere to go, the commodity markets have shown incredible growth on the back of demand issues. Namely oil, as mentioned in World Crisis scenarios for the 21st century – Peak Oil (update 14) Oil heading towards $150.00, oil has now trading range of 136 and 142 (refer to graph). Note recent sell off oil, now 137 – 138. Gold in a lot of ways has remained quite static, with not a huge amount of buying going on. This could change dramatically if the US (and Europe) report of banking collapses or run on banks. I suspect this is going to be soon, I wouldn’t be surprised if a European Bank (namely Spanish or German bank) shows real signs of weakness.

On a one day chart Gold spot price, resistance set at 953, barrier set 845. Trailing above the 100 day moving average at 917 and the 50 day M.A at 906. A current trading range of 998 and 933 is set. Current price 971 – 974. CCI (1) set on lows of 32 days, CCI (2) 91 (3mths) / 32 x 12 / 7days = 4.87.

Gold is steady on the technical chart after breaking through resistance at 953, the Bollinger bands and CCI’s are indicating overbought signals. A slight sell off is probable within the set trading range. Depending on any negative news from both the US and Europe on banking woes – gold may move into the 980 and 1000 range by July 20.

Long Trade, take profit (July 20th 2008 ) at 995

refer to graph (please click on larger image)

*please note morbius glass does not give investment advice. The following information is for reference only. Trade at your own risk.

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3 Responses to “Gold entering a bull run to $1000.00.”

  1. Adrian said

    *CORRECTION*

    I mentioned “gold may move into the 900 and 1000 range by July 20”.

    The correction is: “gold may move into the 980 and 1000 range by July 20”

  2. Adrian said

    *UPDATE CORRECTION*

    I mentioned that, “Global stocks, sans China, have essentially collapsed”, which means excluding China. This is incorrect as the Shanghai Composite has fallen 48.6% year to date.

  3. […] 23rd, 2008 I prematurity called a bull run for gold going into the high 900’s (please refer here). The reasons behind a possible (although it didn’t occur) gold rally last week, or early […]

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