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Politics : Technical Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Robov who wrote (5747)	4/6/2013 3:58:37 PM
From: Harmens	2 Recommendations Read Replies (2) \| Respond to of 14245

<However, as I mentioned further up in this commentary, yesterday's rally did not go unopposed>. First of all, thank you for your very good and accurate description of COT. I completely agree with your conclusion. However… Let me add some observations of the Friday Gold market from the trader’s point of view. The Gold Cartel didn’t oppose the rise in the price of gold on Friday. Usually they do it by putting huge lots on ASK. This is the signal, and the buyers immediately start to lower the BID. The Cartel lowers the ASK with the huge lot until they encounter real buying. Here the “yo-yo principle” comes into play and the gold price bounces back. This Friday they didn’t try to use any market manipulation technique and they didn’t try to sell any big quantity of shorts. When you really want to sell a big amount you place so called “iceberg” order with the moderate lot on the ASK. But this order demonstrates remarkable resilience and very slowly goes up under pressure. It also didn’t happen. This Friday the price of gold went up practically unopposed until it reached $1580 (Comex and Globex). Please pay attention to the fact that Gold miners actually went down on the day – NUGT. It’s a warning sign that this rise is not for long. My conclusion: The Gold Cartel started to use a new technique – to push gold down on weak days and let it climb on strong days. They simply don’t have enough money to fight on too many fronts. We should expect another push down to $1540 area on a weak day. And I expect another bounce. Long term forecast for Gold – bullish (but, as you said, the timeframe is uncertain) Usually, traders do not make forecasts for more than 6 months. It’s too many variables. Regards Harmens