Charts of $XAU (Gold Index)

Discussion in 'Commodity Futures' started by ChartingMarkets, Jan 25, 2004.

  1. Was reading all the talk about where and when to buy and enter in for the next bull market run on physical Gold, Gold Miners, and Gold Futures. Well I did some checking and here is what I found. Actually I didn't really have to look that hard as I have seen this pattern forming and trading it since 2 1/2 years ago. Anyway I thought I might share it with you folks here on ET.

    Its 2 charts in all. You need to look at both. One of the daily XAU. One of the Monthly XAU.

    All Charts are annotated for point of reference purposes.

    Basically in a nutshell I am looking for the XAU as the index of reference for the gold miners to sell off to the 88-89 area and then I will buy back in to the gold miners such as NEM,AU,ASA,GG etc. For another bull leg up later this year.

    Enjoy the charts.
  2. Here is the Monthly Chart of the XAU. This chart gives you the strategic view. While the first chart which was of the daily gives you the tactical view.
  3. The 50% of the 03' lows to the recent highs @ 104.5 comes in @ 87.5 which coincides with the throwback to the top of the inverted h&s...
  4. to read your posts and see those colorful charts !

    no tell me if you think XAU goes to 88 this week :p
  5. They can be even more colorful than that. Seth I don't know if XAU gets to 88 Monday, a month from now or longer. I don't even know if it turns back up from here and it never goes below 95 again let alone 88. I do know that in order for me to want to place my bet I would have to see it in the range of 88-90 lets say. Then I would have to see it start turning up so I can put a stop loss on any gold positions with a line in the sand on the lows it makes after the XAU turns up from testing the neckline on the monthly.

    Thats the trick, identify lots of different trading opps and you can be ready to go without emotion for the ones that do actually come in to your preconceived target areas. If the XAU did turn up from here then I would need it to start basing properly here for a while then get back over the top of the double top area and then I would say hey look at that that theory of it testing the Monthly Neckline is not going to happen let me go long here and put a stop at the top of the now broken to the upside double top. See thats the trick to charting its just about support and resistance, line in the sand stuff where you can set up your odds for your bet.

    Your a scalper anyway Seth, these charts are like slow motion to you.
  6. 'Seems you have much 'sperience with charting.

    What resources if any (books, websites) would you say have beem helpful to you over the years in becoming a good chartist?

  7. I guess there are a number of decent trading books out there that can give you a foundation in a sort of basic training type manner. Afterwards you would need real combat experience in order to gain veteran status. Books to begin which are some of my long time favorites are

    Technical Analysis of Stock Trends: Robert Edwards & John Magee

    Technical Analysis Explained: Martin Pring

    Analyzing Bar Charts For Profit: John Magee

    These 3 books I would consider basic training for learning how to read and start understanding charts. There are many other books out there but these 3 are the ones I consider the most important as they cut through all the b.s.
    Of course once again there are many books that deal with other facets of trading, however, these deal with just understanding charts, which I believe is what you were focusing on with your question. Hope this helps.