Gold sell signal

July 23, 2015 09:06 AM

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Gold has another sell signal, since the last one a little over a week ago gold has fallen $60 per ounce. My research suggests that gold (on the daily chart) has once again turned into a longer term downtrend after being in congestion for more than 5 months--gold has broken out.

I think gold and other commodities (crude oil) are in the middle of a meltdown. I would not be surprised to see a $50+ down day in gold. It looks like investors are realizing that gold may not be a good investment. The weekly chart had its last sell signal four weeks ago and is in a long term trend down. I have a measured objective of $980 with resistance at $1,142. The monthly chart had a sell signal last month and has had almost $100 range so far this month. This chart also has established gold to be in a longer term down trend.

 

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.