Michael Oliver – Another Look At The Big Picture For Gold After Brutal Takedown
On the heels of a continued takedown in the gold and silver markets and chaos in bond markets, today King World News is pleased to present an extremely important update on the war in the gold market from Michael Oliver at MSA. Oliver allowed KWN exclusively to share this key report with our global audience after today’s takedown in the gold market.
A more complete report is available to MSA subscribers, but here are a few key portions of today’s major update on the gold market:
By Michael Oliver, MSA (Momentum Structural Analysis)
November 23 (King World News) – Gold futures (the nearest active contract) in a price point-and-figure format chart. $20×3 block reversal since the 2011 peak (see chart below).
Around $1240 in February of this year (black arrow) price broke through a 45° downtrending resistance line that traced back to the 2011 peak above $1900.
What Does It All Mean?
Action has since worked upward and to the right of the breakout (annual momentum, shown in the next chart, broke out at $1140 to $1160 in February, about $100 before price broke out). Note the flat floor of price readings at $1200, now there for a third time. If one references price only, then a litmus test is to take out the prior flat lows at $1200 with an $1180 print (December gold). $1180 has not yet been traded, with the low so far on Wednesday just above there. Any three upticks following that will likely generate a turn that “takes.” Meaning if we see $1180, then $1240 is an escape to the upside signal. If price halts at $1200, never touching $1180, then $1260 provides those upticks…
Does the drop negate anything? No. At what level would MSA say that the integrity of the positive momentum uptrend is in jeopardy or at least in serious doubt?