Shayne Heffernan Gold Report: Gold Remains a Buy

Shayne Heffernan Gold Report: Gold Remains a Buy

Shayne Heffernan Gold Report: Gold Remains a Buy

Gold fell nearly 1 percent on Monday to its weakest in two weeks after centrist Macron led the first round of voting in the French presidential election providing a good entry point to buy and hold.

Hedge funds and other money managers increased their net long position in COMEX gold for the fifth straight week to April 18, lifting it to a five-month high, U.S. Commodity Futures Trading Commission (CFTC) data showed Friday.

Read more: http://www.nasdaq.com/article/preciousgold-falls-as-stocks-gain-after-french-election-result-20170423-00073#ixzz4f8Rw4xU7

Read more: http://www.nasdaq.com/article/preciousgold-falls-as-stocks-gain-after-french-election-result-20170423-00073#ixzz4f8RgTjSY

ETF Holdings

Gold prices closed down -8.440 at 1,275.560. Volume was 8,900% above average (trending) and Bollinger Bands were 5% narrower than normal.

Open High Low Close Volume___
1,269.7701,277.3701,265.9001,275.560 5,199

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 1,282.61 1,246.24 1,253.47
Volatility: 13 11 14
Volume: 520 104 26

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

Gold prices gapped down today (bearish) on heavy volume. Possibility of a Breakaway Gap which usually signifies the beginning of a major market move. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.

Gold is currently 1.8% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect very strong flows of volume out of XAU= (bearish). Our trend forecasting oscillators are currently bullish on Gold prices and have had this outlook for the last 20 periods.

Candlestick Analysis

A white body occurred (because prices closed higher than they opened).

During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

Momentum has been negative, time to buy

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 35.7903. This is not an overbought or oversold reading. The last signal was a sell 3 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 59.07. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 3 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -3. This is not a topping or bottoming area. The last signal was a sell 4 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 0 period(s) ago.

gold photo
Photo by Pascal Maramis

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S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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