Thursday, April 12, 2012

The Gold Price Will Jump to $1,750 maybe $1,800 Once Through this Clustered Resistance

Gold Price Close Today : 1679.50
Change : 20.50 or 1.24%

Silver Price Close Today : 3251.50
Change : 100.4 cents or 3.19%

Gold Silver Ratio Today : 51.653
Change : -0.995 or -1.89%

Silver Gold Ratio Today : 0.01936
Change : 0.000366 or 1.93%

Platinum Price Close Today : 1602.50
Change : 21.20 or 1.34%

Palladium Price Close Today : 652.55
Change : 16.45 or 2.59%

S&P 500 : 1,387.57
Change : 18.86 or 1.38%

Dow In GOLD$ : $159.84
Change : $ 0.30 or 0.19%

Dow in GOLD oz : 7.732
Change : 0.014 or 0.19%

Dow in SILVER oz : 399.40
Change : -6.98 or -1.72%

Dow Industrial : 12,986.58
Change : 181.19 or 1.41%

US Dollar Index : 79.32
Change : -0.394 or -0.49%

Okay, fess up: I called the
GOLD PRICE wrong yesterday. It wasn't tapped and topped, it was balling up for a $20.50 jump today to $1,679.50. That's the top of a resistance band bounded above by $1,682.

Clustered here is resistance from several points: $1,682 lateral resistance, 200 DMA at $,1691.50, 150 DMA at $1,694.60, 50 DMA at $1,694.60. More lateral resistance shows up at $1,705.

Does all that mean that the GOLD PRICE is deader than a hammer? Not at all. Rather, it means that once gold gets through this clustered resistance -- and the last 5 day's jump from $1,608 to $1,679.50 shows its determination -- gold will jump to $1,750, maybe $1,800 while all the shorts are wiping the smiles off their incredulous faces.

Only a GOLD PRICE close below $1,630 would invalidate this outlook.

Y'all have to figure out how long you want to jack around delaying, procrastinating, dilating, and putting off buying GOLD. Shucks, why buy at $1,680 when you can wait and buy at $1,800?

The SILVER PRICE rose 3.2% today, 100.4c to 3251.5. Since Monday, 9 April, silver has risen from a low at 3099c to 3251.5 today. I make that 152.5c -- not bad.

There's more in my craw: silver closed today above its 20 DMA (3221c) but silver's big hurdle comes at 3335c, strong lateral resistance. Once the SILVER PRICE pierces that veil, next big resistance looms at 3518, the 300 DMA.

Y'all listen: SILVER has already been dancing under and over and under its 300 DMA, a rare occurrence in this bear market. When it crosses above that mark this time, you can kiss it goodbye.

If silver closed below 3100, my hopeful upside outlook would be utterly gainsaid.

I can't be testy or sour today: it's my wife's birthday. I have too much to be thankful for.

However, I don't mind beating up on stocks and scrofulous fiat currencies for a while, just to stay in practice.

Stocks looked right spry today, to folks without much information or insight. Dow jumped 1.4% or 181.19 points to 12,986.58. Before y'all commence to jubilating, I would call to your mind that this only carries stocks back up to where they collapsed, most likely for a final kiss good-bye.

S&P500 jumped 1.38% to 1,387.57, up 18.80. Unless the Dow can scratch and claw its way over 13,000 and the S&P500 over 1,395, these jerks and twitches are no more than you'd get clamping jumper cables to a dead bullfrog.

But what do I know? I'm just a natural born fool from Tennessee who lives out in the country and wants nothing more than to live and die right here. How's that for ambition?

The Scrofulous US dollar index is shedding points like a rattlesnake sheds skin. Today's 39.4 basis point drop (0.51%) took it below the 20 day moving average (79.56) a warning to all watchers that momentum might be turning down.

Look here at some other milestones. Down below, and not too killing far, is the 50 DMA (79.31) and closing below that one sends the dollar limping like Chester on Gunsmoke. But the real "line you'd better not cross" stands at 78.65. Long as the scabby dollar stays above that, it's just moving sideways. Through that it risks a fall to the 200 DMA (77.69) or further.

One thing we know from watching markets: flat doesn't usually last long. Flatness implies a market where buying and selling are perfectly balanced, which happens about twice a millennium. Course, if Nice Government Men are pulling a play, they can keep it flat a little longer -- before it blows up on 'em.

Japanese yen was flat today. Given its chart screaming it wants to advance against the Japanese economy's need to export more, expect the Nice Government Men to attack soon to drive it lower. Closed 123.66c (Y80.87).

More proof of collective insanity: the euro rose today 0.61% to $1.3190, on news that -- Spanish bond yields have risen to 6% again. Situation will continue to decompose, continue to stink while lying governments and banks say it smells of roses.

On 12 April 1947 my beloved wife, Susan, was born. She's been blessing everyone within shooting distance -- and some even farther away -- ever since. I'm not partial, just honest.

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger
10:00am-5:00pm CST, Monday-Friday

© 2012, The Moneychanger. May not be republished in any form, including electronically, without our express permission.

To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down.

WARNING AND DISCLAIMER. Be advised and warned:

Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.

NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps.

NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced.

NOR do I recommend buying gold and silver on margin or with debt.

What DO I recommend? Physical gold and silver coins and bars in your own hands.

One final warning: NEVER insert a 747 Jumbo Jet up your nose.