Ditto Gold

Perhaps I should take it easy on the eggnog but heck I’m throwing this one out gratis:

If you caught that NLSL on gold you’re probably feeling mighty smug right now. Well, wipe that silly grin off your face and start cashing out – I think the easy money is over for now. That lower 100-day BB line should be good for some support, at least on a short term basis.

Medium term only an immediate push above 1636 before Friday would spare the shiny metal a visit of the 1500 mark – at least that’s what my weekly NLSL is showing me right now. So, I expect a bit of push back here but I don’t think gold is completely done yet.

Of course the astute steel rat may already have considered the long term implications here: IF we really drop toward 1500 then that would mean we’re getting very close to gold’s monthly NLSL at 1478. That would be a great opportunity to take on long positions – or short contracts if it looks like we’re going to fail. Either way – if this goes according to plan it ought to be a lot of fun. Let’s keep our fingers crossed we’ll get that setup and thus an opportunity to show the gold bugs how it’s done.

UPDATE 2:15pm EDT: I just realized that one of our favorite commodities setups may be ready for the plucking – subs only however:
[amprotect=nonmember] More charts and cynical commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero or Geronimo subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
[/amprotect] [amprotect=1,13,9,12,5]

Remember that cocoa trade we were all waiting for? And how it ramped up hard after touching 1200? I told you guys to not chase this up – and now you know why. Well, this may be as good as it’ll get, folks – we just descended back to that first NLBL at 2154 and I think we can be long here as long as we don’t plunge through it. I also see a bit of hourly support here as we are testing the 100-hour SMA right now – ideally we want to push above it in the next few hours.

If we do fail this NLBL then I would not want to be short – I would prefer to simply go back into cash and to wait for further instructions.

Copper also looks like a good long here – I would prefer 3.23 but whether we’re getting it is another question. If you prefer EFTs you can also trade NIB which is not a par match but close enough for govmint work as they say. Happy hunting!

Cheers,

Mole