4 Hour Gold Chart

Dear friends:

I have gone to a 4 hour chart on gold to try to catch some of the volatility in these precious metals markets a bit earlier. The daily chart is simply too slow in these market conditions other than for those who have a bit longer term perspective and are doing more of a position trade and thus willing to ride out larger price swings. If you are actively trading, you are probably using even shorter term charts than this such as a 30 minute or even 15 minute.

I will still post the daily chart on a regular basis, time permitting, but want to make these shorter term charts available. We can still do our studies on that daily as well as the weekly which are the key to getting a bigger view of the market in general.

We can use this 4 hour chart to better pinpoint some of the support and resistance levels that are being formed by the market action.

Note the levels shown on the chart and wait to see the market action around those levels.

Volume to the upside has been decent but I would prefer to see it a bit stronger. It still exceeds downside volume however which is friendly.

The nice move from near $1355 to $1410 was a trending move as evidenced by the rising ADX line. Directional movement to the upside has been consistently above any downside movement even on the retracements in price until this afternoon. We experienced our first downside crossover of the positive directional movement line (blue) over the negative directional movement line (red). What we want to watch for now is the action of these two lines as they give us a feel for which of the forces, bull or bear, can seize control of the market from this point.