Precious Metal (Gold) Monthly Chart Update 17/09/2016.

If we look at the Daily Chart ( not shown)  of the Precious Metal Gold, we are stuck in a trading range where price action is swinging between approx. $1310 and $1380 USD. A move out of this trading range should give us further clues as to which way the precious metal may be headed. Currently we are at a support.This is short term Daily.

If we look at the monthly chart on the other hand, and use a simple moving average of 12 period as a measure of it’s long term trend, that trend is UP and STRONG. End of Month close below $1222 USD would suggest a change of trend from UP to DOWN. I realise and I know that defining a trend  is not as simple as this and chart reading is not Black & White. Gold on the other hand is a beast that respects it’s 12 period monthly SMA as can be seen on the chart. Back in GFC when it cleared it ( 12 Period Monthly SMA) it raced to the 2012-2013 Top. Are we in for another one of these meaningful moves or is the most recent bullish move about to reverse ? I can’t answer this question. There is no way of knowing it. What I can say on the other hand is that, lets wait for this trading range on the daily to resolve itself, with either a BREAKDOWN or BREAKOUT. If and when this is on hand, we should have some idea as to where the Precious Metal may be headed in the long term. 

Monthly chart of Gold is courtesy of StockCharts.com

As mentioned previously,there is a ChartCon @ StockCharts.com, where legendary analysts of our time like Pring and Murphy are presenting. If interested, please visit StockCharts.com website for further information.

goldmonthly17092016

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