Gold Bullion and Crude Oil Bull Market Turning Point

By: Chris Vermeulen | Thu, Mar 12, 2009
Print Email

Gold bullion and Crude Oil are both setting up for a rally higher if they continue to complete the breakouts. Oil looks like the best trade from a quick glance with huge profit potential but its important not to under estimate gold bullion as it can generate big moves even though is has already made a nice rally this year.

Gold stocks look to be finding support and are testing resistance levels from both our trend line and 50 EMA. A breakout to the up side would be very bullish for these golden investments.

Gold Bullion Stocks ? Daily Chart

Gold Bullion Prices

Gold bullion has had a great rally this year but it was tough to time entry points due to the V shaped bounces compared to consolidation style patterns. As you can see on the gold GLD chart below we are seeing a possible bounce which could be the beginning of a new leg higher.

Gold is currently trading at the bottom of our trend channel and trying to break above our resistance trend line. Gold bullion stocks (equities) our out performing the price of gold which is a very bullish sign for higher bullion prices. The momentum MACD is testing the 0 (zero) level which can be support for gold and the stochastic indicator is pointing to higher prices in the near future. I expect we will see gold gap higher at the open on Friday as international traders will push the price higher over night.

Gold Bullion GLD ETF ?Daily Trading Chart

Crude Oil - Continuous Futures Contract

Crude oil futures are trading and trending higher and look to have some legs behind the move. Oil has been slowly trying to bottom and with any luck the next couple weeks we will see a full trend reversal and start to move higher. You can see from the chart below that the momentum (MACD) has been moving higher over the past few months and this kind of divergence is bullish for oil. In the past 2 weeks oil has broken an important resistance trend line. Things are starting to look up for oil.

Crude Oil USO Fund ? Daily Trading Chart

Crude oil is tough to trade because all the funds seem to have contango which alters the price of the fund several percentage points away from the actual price movements of crude oil futures contracts. The USO fund today has made a nice move higher with strong technicals. As you can see on the chart energy stocks are out performing oil which is very bullish. The momentum (MACD) is bullish as well. Oil could find some resistance at the 50 EMA but we will cross that bridge when we get there and hopefully Friday. I can reassess the situation over the weekend.

Gold Bullion and Crude Oil Conclusion:

Gold and oil are both looking very bullish as of today.

The weekly chart of gold bullion although it is down for the week is currently testing the 10MA which is a technical support level and has held many times before when gold is trending higher. We would like to see a bounce in gold which would last several weeks or months.

Crude oil has bullish charts as well but is the flip side of gold. Oil has been moving higher and has broken out to the up side with momentum (MACD) generating a breakout signal. The next few weeks could provide some great buy points for these commodities if the technical?s hold up.

Gold is currently at support which is generally a good buy point and oil is trading at the high but with a new trend line support drawn today it is trading near a possible support level.

If you would like to receive my weekly trading reports please visit my website: www.TheGoldAndOilGuy.com.

 


 

Chris Vermeulen

Author: Chris Vermeulen

Chris Vermeulen
President of AlgoTrades Systems
www.TheGoldAndOilGuy.com

10126 Hwy 126 East, RR#2
Collingwood, ON, L9Y 3Z1

Chris Vermeulen

Chris Vermeulen, founder of AlgoTrades Systems., is an internationally recognized market technical analyst and trader. Involved in the markets since 1997.

Chris' mission is to help his clients boost their investment performance while reducing market exposure and portfolio volatility.

Chris is also the founder of TheGoldAndOilGuy.com, a financial education and investment newsletter service. Chris is responsible for market research and trade alerts for of its newsletter publication.

Through years of research, trading and helping thousands of individual investors around the world. He designed an automated algorithmic trading system for the S&P 500 index which solves his client's biggest problem related to investing in the stock market: the ability to profit in both a rising and falling market.

AlgoTrades' automated trading systems allows individuals to investing using either exchange traded funds or the ES mini futures contracts. It is supported by many leading brokerage firms including:

- Interactive Brokers
- Trade MONSTER
- MB Trading
- OEC OpenECry
- The Fox Group
- Dorman Trading
- Vision Financial

He is the author of the popular book "Technical Trading Mastery - 7 Steps To Win With Logic." He has also been featured on the cover of AmalgaTrader Magazine, Futures Magazine, Gold-Eagle, Safe Haven,The Street, Kitco, Financial Sense, Dick Davis Investment Digest and dozens of other financial websites. His list of personal and professional relationships approaches 25,000, people with whom he connects and shares is market insight with out of his passion for trading.

Chris is a graduate of Seneca College where he specialized in business operations management.

Chris enjoys boating, kiteboarding, mountain biking, fishing and has his ultralight pilots license. He resides in the Toronto area with his wife Kristen and two children.

Copyright © 2008-2014 Chris Vermeulen

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com

SEARCH





TRUE MONEY SUPPLY

Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/