"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat

Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput


Wednesday, January 23, 2013

50 Day Moving Average Stymies Gold

Gold seems to have run into extremely HEAVY selling pressure at the 50 day moving average, which incidentally, just so happens to be coming in just below the $1700 level. It appears a concerted effort is being made to prevent gold from acquiring a "17" HANDLE, which is what the momentum based buyers are waiting for.

If you look at the chart closely, you can see the defensive fortification being erected by the bears. So far the market refuses to break down but it is stalling out a bit here and will need to quickly push past $1700 soon or we will see some short-term oriented day trader types start looking for the exits.

Notice that I am including the RSI indicator merely to show that it too is stuck below the 60 level, indicating the continuation of a consolidative (sideways) type of trading pattern in the metal. Until we get a clean break of 60 on this indicator, and preferably a run past 65, the pattern is sideways within a defined range of $1695 - $1700 on the top and $1665 or so on the bottom.


  1. Thnx for the insights Dan ..totally agree. If you look at gold on a 4 hour chart it also shows it has reached the 88.6 fib RT level after it made the big move down..so I also expect some movement to the downside

  2. Dan,
    I do appreciate your blog and your comments (ALL of them!)

    What I still do not understand is why I (we) should follow all the charts, study the fundamentals... when we know it is a rigged game. The guys in charge -for now- are in charge and they will paint anything they want, knowing what all of us, and even more professional analysts/players like you are looking for/checking/analysing/charting...

    Your comment about the "Complacency Index at 69 Month Low!" is showing us that despite the huge issues going on the average investor is not aware of the -should I dare use the word again- manipulation.

    I have been trying to check how much trading is done by hedge funds vs retail but have not been able to get it. Would you have the number?

    Anyway thank you again for your hard work.


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