Bernanke paves way for $2,000 gold target

Daily Market Analysis (SHORT TERM) Tuesday 09/04/12


KEY TERMS

OVB       Outside Vertical Bar
VRCB    Volatility Reduced Compression Bar

METALS

COMEX Gold (December):

  • Short Term Trends are bullish.
  • Confirmation of a bottom with a range violation on 08/31/12 @ 1679.40. Confirmation of a bottom with a close violation on 08/31/12 @ 1679.40. Upside Targets = 1721.90 – 1728.70.
  • Bullish EROVB generated on Friday making new highs on current move @ 1695.50.
  • December Gold exploded higher on Friday as Chairman Bernanke opened the door for further QE measures and thus added to the current $100/oz. increase in value over the past three weeks.
  • As we have mentioned in our morning reports, after projecting the Q2 downside target of $1,528.10, Gold could have seen an Intermediate-Term bottom that will push this market even higher toward our year end objectives of $2037.90 - $2051.70.
  • Projected Daily Range: 24.50
  • Projected Weekly Range: 50.10
  • Projected Monthly Range: 126.40

CURRENCIES

Euro FX (September):

  • Short Term Trends are bullish.
  • Confirmation of a bottom with a range violation on 08/14/2012 @ 1.2379. Confirmation of a bottom with a close violation on 08/21/2012 @ 1.2451. Upside Targets = 1.2623 – 1.2699.
  • The September Euro FX was able to keep its head above the technical failure level of 1.2467 last Friday and continue on its recent Short Term bull market run and achieved our initial upside objective on the heels of the possibility of more Fed QE and an ECB decision to possibly fund national back bailouts in Italy and Spain.
  • Should the Germany approve the bond buying action in the coming weeks, it could seriously lift the Euro higher to our Q3 upside target of 1.2797.
  • Projected Daily Range: .0091
  • Projected Weekly Range: .0200
  • Projected Monthly Range: .0532

INDEXES

E-Mini S&P (September):  

  • Short Term Trends are bullish.
  • Confirmation of a top with a range violation on 08/23/12 @ 1404.00. Confirmation of a top with a close violation on 08/23/12 @ 1400.00. Downside Targets = 1387.50 – 1375.50.
  • Possible confirmation of a bottom with a range violation @ 1412.50. Possible confirmation of a bottom with a close violation @ 1412.50 or higher.
  • The September S&P’s moved back higher on Friday after holding the lows of the past two weeks and closed back above the daily mid-range after Bernanke’s Jackson Hold announcement.
  • Traders should be able to ride the bull wave higher for most of the week heading into Friday should other economic indicators not severely disappoint before Friday’s NFP report.
  • Projected Daily Range: 14.00
  • Projected Weekly Range: 35.75
  • Projected Monthly Range: 80.25

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