Gold, a short term sell?

If you are following gold you already know that it's had a tremendous run as of late.  However there are a few signs from the Weekly Timeframe that may indicate some resistance coming in.  The techniques that I am using in these examples are the same kind that we teach in our 3 Day Advanced Trading Class and our upcoming 4 Day Trading Summit, you can find out more information about those classes here:

http://www.esignallearning.com/seminars/schedule/default.aspx?categ=premium

I am starting with the Weekly Chart and doing a simple Gann Box to find out where exactly we are in the big picture.   I have identified the Time and Price "Room" that we are in and I take those levels and bring them down to the lower timeframes.  The weekly chart is showing some resistance at today's high of 1224.

 

Next using the same Weekly Gann Template I am going to bring those Weekly Levels down to a much smaller timeframe the 60 minute chart.

 

The intraday low today of 1204 was a level of support as the 50% Gann Level is usually a Make or Break point of the trend.  If we continue to sell off below the 50% level we could see a Wave 4 forming on Gold.  If you notice earlier on the chart we had a very similar scenario back around Nov 30.  In that case we held the 50% level and Gold began a rally to the latest highs.  If you feel adventurous we can look for an XTL Sell on the 60 minute chart to sell into the profit taking (once we are below the 50% level).

One thing to remember, if we do breakdown this breakdown is simply a Wave 4 in a bullish move so the trend is still up but profit taking may begin here.

Ron Wheeler

eSignal Learning
 

Comments

[samir ghadiali]

Thanks Ron,
Also a MOB from 17th march08 at same resistant level on weekly chart as you mention

[steve brophy]

I have a lot of respect for you folks that teach here and in seminars however...personally don;t think you should use this blog to just advertisie to us into attending a seminar...I am a long time GET user and believe that you should share with us how you are using the GANN box right here. It IS Called Advanced GET with Gann in the name...and is expensive enough this learning should NOT be an additional expense!

[Chris]

I totally agree with Steve. Unless they start doing it, I have a feeling that AdGet team will loose a lot of their business.

[Ron Wheeler]

While I understand your point, Gann is just not something that can be taught over a blog. It's at minimum a 2 Day Discussion with hundreds of pages of text to fully describe the multiple usages. The Users Manual and our Members Page Recording shows the beginning concepts of Gann Usage.

My hope is that I can point out these trades showing you the benefits of Gann Analysis so you can take advantage of them whether you use it or not, as I have been doing since the beginning of the Blog.

[Al Dharsee]

The Advanced GET data I get from e-signal has had a lot of problems lately. What data sources would you recommend for A-GET end of day?

[Michael Bender]

I'm a bit new at this, but I see that Wave 3 hit 2.62 times Wave 1 on the daily. If I'm not mistaken, it's a classic Elliott wave 3 resistance point.

[Gold Predictions]

Depending on one's predictions, a short sale would be profitable. But it will depend on the actual evolution of the market.