CHART SIGNALS & ANALYSIS
(2 months of time, 30 minute bars)
Gold & Silver: Range
Riders Update
Dev Cheekock (Sprout)
email: dev@goldsproutprofits.com
written Sun Oct 16, 2011
posted Oct 17, 2011
GOLD FUTURES
My
current range analysis for the gold weekly chart.
Holding: My gold futures long position
is 77.55% of the total portfolio.
Price Range: The projected 5 day range is
$1620 to $1740.
Volume: The big volume areas are $1500
and $2000. If the gold price begins to trade under $1500, it
could usher in a major sentiment change for in this market, but
an even bigger change is true for a move over $2000. While
I don't always show the 1 minute chart for gold, it is the main
chart I have in front of me all day long. A modest day of trading
may have many key bursts of volume that are only apparent on
the one minute chart. It's these one minute bursts that really
showcase the action of the bigger traders as a trending move
gets started or ended.
My current range analysis for the gold daily
chart.
In-House Oscillator (Sprouticator): I use a blue Sprouticator to
indicate professional buying power and a red Sprouticator to
indicate professional selling power. The current reading of 2
red for gold futures indicates light selling by professionals
is now the action in play.
I believe is critical to catching the action of professionals
that only short term volume patterns can reveal.
Gold Futures Morning Summary: The price is relatively
high. I would like you to work in the $1620 to $1740 range.
The Bottom Line: Buy some gold futures around $1600- $1640.
Sell some gold futures around $1680- $1740, and hold a substantial
core position, anticipating much higher prices. Use little or
no leverage. Futures markets offer you the best in liquidity,
and the best trading hours, but most investors use them solely
to trade with leverage. I think that is a mistake.
***
SILVER FUTURES
My
current range analysis of the silver weekly chart.
Holding: My silver futures long position
is 53.89% of the total portfolio.
Range: My projected 5 day range is
$29 to $39. My range is a wide spread; however, I'm very focused
on the upside of things. Silver has been in a sideways state
of price movement for a while now. This can affect investors
mentally, causing them to sell what they own, and turn bearish.
Once the price starts to move higher, it should not take long
to recover the area that has been lost.
Volume: The big volume areas are at
$20 and $50.
My current range analysis of the silver daily
chart.
In-House Oscillator
(Sprouticator):
The current reading of 2 blue for silver futures indicates light
buying by professionals is now the action in play.
Silver Futures Morning Summary: The price is relatively
neutral. I would like you to work in the $29- $39 range.
The Bottom Line: Buy silver futures at $29- $32. Sell
around $34- $39.
Gold & silver 2 week outlook: As powerful as the upside
feels, I doubt it's going to happen this week. You could face
some more downside in both gold and silver for the next week
or two. The price of both gold and silver can stay still for
quite a long a period of time, with very little movement at all.
Most investors don't realize this action is more the norm than
the exception, in both gold and silver. I always carry short
positions as well as long ones, for both gold and silver, but
I am always far more long than short.
Disclosure: I hold gold & silver futures
positions, both long and short.
Monday October 17, 2011
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Dev Cheekock (Sprout)
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Monday October 17, 2011
For 321Gold readers: Email me at testdrive@goldsproutprofits.com and I'll send you my micro gold
futures report and Bollinger bands report for gold and silver
futures. The standard COMEX gold futures contract is 100 ounces.
The mini contract is about 32 ounces. That is still fairly big
if you want to be able to hold a number of contracts, in most
cases. The recently-introduced micro contract is just 10 ounces,
and could be a game changer for the retail investor.
Dev Cheekock [Sprout]
website: www.goldsproutprofits.com
email: dev@goldsproutprofits.com
Click here
to subscribe to my service
MODEL PORTFOLIO
GOLD POSITION LIMITS
Minimum long gold position size: 20 contracts (100oz per contract).
Maximum long gold position size: 100 contracts
Minimum short gold position size: 10 mini gold contracts (approx.
32 oz per contract)
Maximum short gold position size: 100 mini gold contracts.
MODEL PORTFOLIO
SILVER POSITION LIMITS
Minimum silver position size: 6 contracts (5000oz per contract).
Maximum long silver position size: 30 contracts
Minimum short silver position size: 10 mini silver contracts
(approx. 1000 oz per contract)
Maximum short silver position size: 50 mini silver contracts.
For gold and silver,
I never like to go below a net long gold position that is less
than 30% of the net liquidation value of the portfolio.
Risk/Disclaimer: No personal investment advice
is given and all investors should understand that their
minimum risk on anything bought is 100% loss of capital. No investment
should be acted on without first consulting numerous licensed
and experienced professional financial advisors. Nobody should
ever invest more than they can afford to comfortably lose, in
anything.
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321gold Ltd
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