Commodities | Dec 22 2010
FNArena has added another video to its Investors Education section on the website.
ATW's Jerry Simmons explains why gold remains in a longer term bull market. Total duration of the broadcast, titled “ATW SP 2010-12-20 GC Comprehensive Local Analysis", originally published on 20th December, is 49 mins.
Summary
In this video, Jerry Simmons, Senior Mentor and Co-Founder of the Advanced Trading Workshop, Inc., provides a detailed multi-year structural analysis of the gold market and calculates four resistance and three support levels for the near future. He concludes that there is a lot of bullish structure in the gold market and until the market goes below a price level of US$1315 “there is only one place to be in the gold market and that is long.”
Comments
The gold market has been in a bull-run for 8 or 9 years now, interrupted by a significant pull-back only in 2008 at the time of the Global Financial Crisis, when the gold market dropped from a high of US$1073 in the week ending 21/03/08 to a low of US$701 in the week ending 24/10/08.
Jerry Simmons analyses the structure of the gold market in detail and concludes that we could be in “the fifth of the fifth”, i.e. in the lower level fifth wave of a higher level fifth wave. He concludes that these two wave fives could culminate at either R1 or R2. R1 (Resistance Level 1) is constructed as the price level US$1480-1495, R2 as the price level US$1545-1555, R3 as US$1595 – US$1625, R4 as US$1700 – US$1720. A broad resistance zone from US$1550 to US$1650 lies above R2, but everything considered, W5 is likely to complete at either R1 or R2 and we could then see the market head lower again.
Support zones below the current market price are to be found at US$1360 (S1), at US$1315-1330 (S2) and US$1255-1270 (S3).
In terms of odds, a continued bull-move is more likely than the opposite at this time, and this view would be confirmed by a price move above US$1410 and Jerry points out that at the time of his analysis the market is only some US$30 to US$40 from that confirmation level. On the other hand, should the market fall below $1360, that would put a serious question mark over the bullish interpretation and – if followed by a move to the lower level of US$1315-$1330 -would change the bias from bullish to bearish, especially a break-out below US$1315.
To view the ATW Strategic Prep Video (originally from November 29, 2010) titled "ATW SP 2010-12-20 GC Comprehensive Local Analysis" click HERE or visit the FNArena Investors Education section of the website.
Here's the direct link: https://www.fnarena.com/index2.cfm?type=dsp_front_videos&vid=20
All views expressed are Jerry Simmons's, not FNArena's (see our disclaimer).
Jerry Simmons has over 25 years of full-time trading experience. He is the senior partner and head mentor for the “Masters” Programme within the education system at New York based Advanced Trading Workshop (ATW). ATW recently set up shop in Australia through the establishment of ATW Australia (since mid-2010).
FNArena is pleased to have Jerry Simmons as a highly valued contributor to its service which aims at both educating investors and assisting them with their own market analyses.
The above mentioned videos can be accessed via the FNArena Investor Education section at https://www.fnarena.com/index2.cfm?type=dsp_minc_education)
About ATW Australia
Founded in June 2010, ATW Australia is a “one-stop-shop for all a trader needs to succeed”: quality education for new traders, superb advanced trading education, fast unfiltered data, a world-leading trading platform, customer oriented competitive brokerage, quality ‘Made in the USA’ specialized trading computers, trading magazines, and the all-important psychological mentoring and coaching for traders. The trading educational products are provided by the Advanced Trading Workshop, Inc. in New York, all other services are provided by a network of partners that were chosen based on their superior products and services in their specific field of expertise. FNArena is one such partner.
To learn more visit www.advancedtradingworkshop.com.au.