Wednesday, May 9, 2012

#Gold Making History Today

I have been widely advocating, for some time now, the fall of gold and many other commodities as mentioned here: http://mcapitalmarkets.blogspot.com.br/2011/06/is-us-dollar-really-doomed.html . 

Today, a 5 year historic trend line has been taken out on the weekly chart of gold. Apart from being considered a possible historic day, it could also mark the beginning of the downfall of the precious metal towards much lower levels. 

As mentioned before, I expect this precious metal to take a plunge towards the 1044 level initially. However, I truly believe it will go even lower.

Again, by doing cross analysis, together with USDx and other assets, It's even more reassuring that the USD will accelerate its rise in the upcoming years. This means, once again, that it will gain against ALL other majors. Also, it means that equities will also accelerate its devaluation.

I urge people to keep in mind the 1.20 level on the EURUSD pair as being, perhaps, the most import key level regarding FX and equities. If and when this level gets taken out, we will see a steep plunge in the markets.

Of course, all of this will take a few months/years to develop. However it is nor mere speculation but a very plausible scenario.

Best,

Mauro.



Gold breaking a 5 year trend line. A historic day perhaps? Time will tell.

#GBPCAD Intraday Trade

Yesterday GBPCAD provided a very nice entry (and result) in the direction of the main move. GBCAD is in a short/mid-term uptrend that has accelerated upwards in the recent weeks. Trend is key to the success of these types of trades. The abscence of a definitive trend largely reduces the chances of making successful trades.

One can easily figure ot the short-mid-term trend by looking at the H1 time frame and even perform some zoom out on that same TF.

Here are the charts that clarify my thoughts.



The pair is at least in a short term trend.





Entry level in blue, stop loss in red and take profit in green.