Category Archives: technicalforecasting.com

6th December 2013 – MIDAS support for gold at $1,206/oz

So, this been quite a week for the precious metal.

To say the trade has been choppy would be quite an understatement. Four of the five trading days have seen 30-40 intraday moves. We’ve tested some of the lows set earlier in the summer and there is a feeling something significant is going on in this market at present. Earlier today, our proprietor, Richard Jennings, wrote another bullish call on gold, pointing to further evidence that a bottoming process is playing out. A cursory glance over the chart below, strongly suggests he could be right:

 

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12th November 2013 — Speculative buy: oil at $95.71

In August’s issue of SpreadBet Magazine I wrote that the Gold/Oil ratio suggested gold was due a rally and/or oil was due a pullback. Although I have remained bullish on gold throughout the summer, at the time I thought it more likely that there was a decent opportunity to short oil. And so there proved to be.

(As an aside if you haven’t added the Gold/Oil ratio to your watch list it probably is time you did…)

 

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30th October 2013 — Banking BP

At the end of August my MIDAS system gave a very clear read on BP. It said to buy.

And so buy I did.

I managed to open at 441p and today sold out at 485p for a fantastic, leveraged, tax free profit!

I saw Zak’s video this morning suggesting there was more upside to come for BP, but in my position I was happy to bank the profit. From a MIDAS perspective, what’s just happened with BP is a fairly common occurrence; a beleaguered stock in a bull market pulls back to long term primary support and then spends a couple of months consolidating at that level. During this time management becomes increasingly exasperated with the stock’s performance (after all those bonuses aren’t given out for languishing share prices!) and surprises the market with a positive corporate action. Usually this comes in the form of a share buyback or, as in the case of BP, a surprise dividend.

 

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23rd September 2013 — The MIDAS Touch

King Midas’ legendary ‘curse’ was that all he touched turned to gold. If only my trading fortunes were blessed with such ill (good) luck! Today, rather than a Midas touch, I find myself faced with a MIDAS test.

OK, I am sorry, enough of the terrible puns!

Immediately before the FOMC bottled making a decision (which in hindsight wasn’t much of a shock I suppose), I released this piece, which analysed the gold price in the context of the MIDAS method. So far this summer, MIDAS has made some fantastic calls in various commodity markets (copper, natural gas, silver and gold). During this time, experienced users of MIDAS will have been able to get in and out of these markets, as crucial levels of support and resistance were confirmed and failed.

 

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18th September 2013 — Gold; a test of faith

We’ve been quite categorical about our position on gold over the summer. We are bullish and believe the current pullback represents a buying opportunity.

It is true that many die-hard gold bugs loudly proclaimed their allegiance to the precious metal from the top, all the way to the bottom, losing fortunes in the process. While we hope we haven’t been afflicted by the same investment fanaticism, we are betting that the latest weakness is a precursor to the next move higher. It is possible that the recent drops have been exacerbated by taper-related speculation, but we are now at or are approaching several key areas of technical interest. As always, we let ourselves be guided by what the charts have to tell us.

 

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