Gold On The Go And We Review 'The Crow'


A rather special one, this edition of The Gold Update, for in addition to our usual unrivaled read on the price of Gold, at the foot we review a "must read" new book.

But first, Gold indeed is on the go. Recall as penned just a week ago: "...with price having traded down to 1673 -- practically the precise low of the 1789-1672 structural support zone -- as the year unfolds we may find that 1673 level to be Gold's 2021 low..."

That year-to-date 1673 Gold low printed 10 trading days ago on 08 March. With price having settled yesterday (Friday) at 1744, 'tis 71 points above such low of 10 days ago. And across the past 15 years, whenever Gold has settled better than 70 points above its intra-day low from 10 days ago, price's gain within the next 10 trading days has averaged 49 points higher. Or more conservatively, the median gain has been 37 points higher.

So the point is (be it by average or median), we can see Gold from here move up into testing the overhead structural area spanning 1767-to-1963 (which ran from the 30 November low to the 06 January high). If robustly "above average", price en route ought eclipse the presently declining red dots of parabolic Short trend as is their state per Gold's weekly bars from a year ago-to-date:

Further sorting it out, from the "Expected Range Dept.", that for Gold's daily trading range is at present 29 points, whilst the expected weekly trading range is 69 points. Contextually, the distance to the rightmost red dot is 152 points. Remember, that is range not change; but if Gold has now embarked on a new up leg, the above graphic's Short position may well be Long in a month's time, (given the accelerating red dot rate of descent currently 'round -20 points per week).

"Too much information", you say? It just depends how much you're into it. For example per Ian Fleming's "Casino Royale" from back in 1953: "Bond...simply maintained that the more effort and ingenuity you put in...the more you took out." Moreover as we regularly state to those who see the markets as a casino: "The critical edge the trader has over the casino is that markets trend." And that has made all the difference, (thank you Bob Frost, 1915).

Thus in spite of the weekly parabolic trend still well Short, we are constructively becoming more Gold (GLD) bullish in furtherance to last week's missive "Higher Gold from Here", so 'twould appear.

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