Gold sell signal

March 18, 2015 10:18 AM

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This is the fourth sell signal in April gold since the trend turned back to down in early February. This is also a new low close for the recent move down where I have support at $1,136. The weekly chart is the real story: The kings cross counter trend sell signal accrued the first week in February, and is about to cross. The moving averages are  going to cross to the down side. Notice the past two times they crossed where the major selloff (green line) goes under the red line.

Gold could have a big selloff; $50 to $90 or even lower. The first support is $1,122 and we may find psychological support at $1,100. I think it's even possible to see $1,050 in the future the monthly chart, which has so far has a fresh sell signal and looks like it is about to have another leg down that should go well below $1,100.

About the Author

Larry Baer is a senior broker with Zaner Group. He has been in the futures industry for 30 years and his prior experience includes a membership at the Chicago Board of Trade.  During his 10 years on the trading floor, he traded and managed a futures and options operation, which serviced both retail and institutional clients.  He is also the author of “The Trader's Tool Box.”  He may be reached at lbaer@zaner.com and  312.277.0112.