A Gold Bust or A Gold Boom?

The Dow Jones Industrial Average (DJIA) rose 160.90 points to 13,241 points bringing it near to a 4-year high. This surge came after Federal Reserve Chairman Ben Bernake signaled the central bank is committed to a policy that helped stocks rally for three years. With the FED’s policy of keeping interest rates near zero and taking extraordinary measure to boost the economy, does this mean Ben Bernake is not done providing liquidity to the market? Is this a signal that QE3 is still alive?        

  Let us look at the charts of Gold, Silver, Crude Oil, and US Dollar Index.

GOLD PRICE                      

       

*GOLD PRICE IS FORMING AN INVERTED HEAD AND SHOULDERS FORMATION BASED ON THE DAILY CHART ANALYSIS. A REBOUND ABOVE ITS RESISTANT PRICE (DOTTED LINE) WILL BRING GOLD PRICE TO ANOTHER RALLY TO $2,000. HOWEVER A DIP BELOW ITS CRUCIAL SUPPORT LEVEL AT $1,600 WILL BRING GOLD PRICE PLUNGING ALL THE WAY DOWN TO $1,000.              

GOLD PRICE TREND ANALYSIS

        *HOWEVER BASED ON TREND ANALYSIS USING EMA50DAYS,EMA100DAYS GOLD PRICE IS AT A CRITICAL LEVEL OF FORMING A DEATHLY CROSS OF EMA50DAYS,EMA100DAYS. A OFFICIAL DEATHLY CROSS OF EMA50DAYS,EMA100DAYS ON THE GOLD PRICE WILL HAVE A HIGHER CHANCE FOR GOLD PRICE TO DIP BELOW ITS IMPORTANT SUPPORT AT $1,600.

SILVER PRICE

*SILVER PRICE IS FORMING AN INVERTED HEAD AND SHOULDERS FORMATION BASED ON THE DAILY CHART ANALYSIS. A REBOUND ABOVE ITS RESISTANT PRICE (DOTTED LINE) WILL BRING SILVER PRICE TO ANOTHER RALLY TO $48. HOWEVER A DIP BELOW ITS CRUCIAL SUPPORT LEVEL AT $28 WILL BRING SILVER PRICE PLUNGING ALL THE WAY DOWN TO $15. 

SILVER PRICE TREND ANALYSIS

*HOWEVER BASED ON TREND ANALYSIS USING EMA50DAYS,EMA100DAYS SILVER PRICE IS AT A CRITICAL LEVEL OF FORMING A DEATHLY CROSS OF EMA50DAYS,EMA100DAYS. A OFFICIAL DEATHLY CROSS OF EMA50DAYS,EMA100DAYS ON THE SILVER PRICE WILL HAVE A HIGHER CHANCE FOR SILVER PRICE TO DIP BELOW ITS IMPORTANT SUPPORT AT $28.

WTI CRUDE OIL PRICE

*WTI CRUDE OIL PRICE HAS FORM AN INVERTED HEAD AND SHOULDERS FORMATION BASED ON THE DAILY CHART ANALYSIS. THE BREACH OF CRUDE OIL PRICE ABOVE ITS RESISTANT PRICE (DOTTED LINE) HAS SPARKED THE RALLY OF CRUDE OIL PRICE. NOW THE QUESTION IS HOW HIGH CAN CRUDE OIL PRICE GO TO?

WTI CRUDE OIL PRICE TREND ANALYSIS

WTI CRUDE OIL PRICE HAS ALSO FORM A GOLDEN CROSS IN EMA50DAYS,EMA100DAYS BASED ON THE DAILY CHART. CRUDE OIL IS DEFINITELY ON THE BULL RUN AND A BREACH ABOVE ITS HISTORIC ALL TIME HIGH PRICE CAN BE POSSIBLE.

US DOLLAR INDEX TREND ANALYSIS

THE US DOLLAR INDEX IS STILL IN A BULL RUN BASED ON THE DAILY CHART ANALYSIS.  THE GOLDEN CROSS OF EMA50DAYS,EMA100DAYS OF US DOLLAR INDEX KEEPS THE DOLLAR AT STRENGTH. BUT HOW MUCH LONGER CAN THIS RALLY LAST FOR THE US DOLLAR?

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