NY Gold Nearest Futures Analysis
By: Marty Armstrong | September 9, 2017 Analysis for the Week of September 11, 2017
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As of the close of Fri. Sep. 8, 2017: At this time, the market is encountering resistance so caution is wisely taken. Projected technical Resistance stands tomorrow at 136242, 135122 135402, . Opening above this area will cause it to become support. Projected technical Support tomorrow lies at 134712. Naturally, opening below this area will cause it to become resistance.
We should see a trend change come this month in NY Gold Nearest Futures so pay attention to events ahead. Last month produced a high at 132900 and so far we are trading neutral within last month's trading range of 132900 to 125390. We need to breakout of this range to confirm the direction. Therefore, a close above will be bullish and a close below will warn of a possible decline.
NY Gold Nearest Futures closed today at 135120 and is trading up about 17% for the year from last year's closing of 115170. So far, we have been trading up for the past 10 days since the reaction low made on Fri. Aug. 25, 2017, but the key low was made 44 days ago on Mon. Jul. 10, 2017 at 120400.
The Daily level of this market is currently in a full bullish immediate tone with support at 134970
On the weekly level, the last important high was established the week of September 4th at 136240, which was up 38 weeks from the low made back during the week of December 12th. We have been generally trading up since that low, which has been a significant move of 13% percent in a stark panic type advance. The broader perspective, this current rally into the week of September 4th has exceeded the previous high of 129880 made back during the week of June 5th. We have seen a rally so far from the last low at 112430 made the week of December 12th, and only a break of that low would signal a technical reversal of fortune. Otherwise, the market remains strong at this time. Right now, the market is above momentum on our weekly models hinting this is still bullish for now as well as trend, long-term trend, and cyclical strength. Looking at this from a wider perspective, this market has been trading up for the past 17 weeks overall.
Some caution is necessary since the last high 137750 was important given we did obtain three sell signals from that event established during July 2016. Critical support still underlies this market at 111520 and a break of that level on a monthly closing basis would warn of a further decline ahead becomes possible.
Logically, my long-term forecast recognizes that the current bearish progression in NY Gold Nearest Futures reflects only a temporary reaction within a broader bull market trend since we have not elected any Yearly sell signals on our model. Furthermore, the NY Gold Nearest Futures remains somewhat neutral at this present moment trading within last year's range of 137750 and 106100. Presently, we have made a reaction low in 2015 which was a 4 year decline. Since that reaction low of 2015, this market has bounced for 2 years, but it remains still within last year's trading range of 137750 to 106100. Keep in mind that we may yet complete the decline to a new low this year if we do not exceed last year's high of 137750 and close above the Yearly Bullish Reversal at 130790. Failure to make new lows this year warns that we could extend down into next year since their is a split between the high intraday took place in 2011 and the highest yearly closing which unfolded in 2012. There remains a long-term risk of an extended rally into 2017 in real terms adjusted for inflation. Only if new highs unfold beyond that target in time is it possible to extend the rally as far out as 2018. To accomplish an extended bull market of this nature requires penetrating above 130790 on an annual closing basis.
So far we have elected a Yearly buy signal from the low of 2015. Nevertheless, we must focuse upon overhead resistance standing at the 130790 level at this time.
Bearing in mind the immediate trend remains bullish since August made new highs and we have exceeded that high so far this month. This is further illustrated given the fact that last month also closed higher. Currently, the market in technically neutral since it is still trading inside last year's trading range. On the weekly level, the last week of 9/4 was an outside reversal to the upside which is implying we have a bullish bias currently. Currently, this market remains in an uptrend posture on all our indicators looking at the weekly level. We see here the trend has been moving up for the past 8 weeks. The last weekly level low was 120400, which formed during the week of July 10th. The last high on the weekly level was 136240, which was created during the week of September 4th. Overall on a broader basis, looking at the monthly level on our models, this market is currently in a rising trend. We see here the trend has been moving up for the past 20 months. The last monthly level low was 104540, which formed during December 2015. The last high on the monthly level was 137750, which was created during July 2016. We have generated a buy signal so some caution is required.