by Steve St. Angelo, SRSRocco Report:
Disregard all the hype, manipulation chatter, and the silly mantra stating that “Gold is now Dead.” The gold price was going to retest the $1,800 regardless of anything to do with Bitcoin’s price rise or Janet Yellen becoming Treasury Secretary. If investors understood the gold fundamentals and technicals, they wouldn’t pay any attention to the Mainstream Media white noise.
Subscribers to the SRSrocco Report knew that I forecasted the gold price was going to RETEST the $1,800 level for months. The gold chart below, now released to the public, published on September 18th, shows why I forecasted a restest of the gold price at the $1,800 level.
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This is a quarterly chart of gold. Each candlestick represents three-months of trading. Using the quarterly chart, we can see a much different picture from daily, weekly, or even monthly charts. You will notice in 2011 and 2012; the gold price attempted to break through and close above the $1,800 level… 6 TIMES and failed. So, when gold finally broke above it in the third-quarter of 2020, there was a high probability that it would RETEST that $1,800 level before moving higher in 2021.
If you spend any time in the Day Trading markets, when a stock or commodity breaks through a long-term resistance level, it’s typical to retrace that level before heading higher. Because the $1,800 was such a strong RESISTANCE LEVEL in 2011 & 2012, it only made sense that when gold shot up to $2,100 quickly, it would retest the $1,800 level. This is exactly what traders expect to see. I am not saying it’s a guarantee… but that is the way the market works.
Over the past two months, I have continued to provide updates for SRSrocco Report Subscribers showing a retest of the $1,800 was inevitable. I also included a new technical indicator that I use in many charts now that the gold price would also likely retest the 5 EMA – Exponential Moving Average, shown below.
The gold price hit a low of $1,797 but closed at $1,804, according to StockCharts.com. Thus, a RETEST of the $1,800 level has finally been confirmed. And, this was going to happen regardless of all the completely WORTHLESS CHATTER on the Financial Networks, Mainstream Media, or Twitter.
So, where is gold heading now? Good question. However, if we look at the 5 EMA, it looks to me that gold will likely retest this level as well before setting up for a leg higher. I will be providing updates on the precious metals prices for Gold and Silver Members.
This is the kind of analysis we provide subscribers that you can’t find anywhere else. For example, we provided subscribers with the following two posts on technical analysis for MAG Silver and the Top Gold Miners, plus detailed analysis on why Kirkland Lake Gold’s share price underperformed in 2020.
I decided to make this chart public because of the CRAPOLA I see on Twitter. I spend some time positing information and debating individuals on the subject of the ENERGY CLIFF and EROI.