As we start the week, I wanted to give you even greater detail on the gold and crude markets.
First, here's a weekly gold chart that takes us back almost three years. Again, note that the trend from the bottom has continued unabated but that every six months or so, price reverts back to the trendline.
With this chart in mind, now take a look at the daily chart of the August gold. We have, without question, ended the recent four-month rally and have now entered a two-month consolidation phase. How low can gold go? I certainly think it will test the lows of early May near 1460 but it could even go lower, albeit briefly. There's a lot of horizontal support near 1440 and, by next month, the long term trend shown above will be in that area, too. Therefore, sometime in July, I expect gold to dip to near 1450 or even 1440. Again, do not let your heart be troubled. This is just a normal phase.
I'd like to look at crude, too, because I find it really interesting. I don't currently have a position, having blown all my crude cash on July $115 calls back in April. Ouch! Regardless, how this trades going forward is going to be fun to watch. In one corner, you have the charts, OPEC and the coming QE. In the other corner, you have the expressed desires of the Obama regime. Which side will win? We'll see. For now, here's a weekly chart that clearly shows support in the upper 80s as well as a daily chart that paints the same picture:
Sorry but I'm out of time for now. Have a great day. I'll check in again this afternoon. TF