Gold Finger is back in love again

Gold is a commodity that has great potential to go higher in the near future along with the rest of the other commodities due to their necessity in our everyday lives. My belief is as things get worse economically around the world more and more countries will start abandoning the $ as the worlds reserve currency, by reducing their holding in US securities and increasing their holdings in commodities like Gold. For some countries this has already become a reality. This presents an opportunity for the day to day trader to take advantage of any moves to the upside that may present themselves in commodities like Gold & Silver. Although I take trades on both the long and short side, as the world goes through the financial crisis that now has now become commonplace. I have given extra attention to bullish signs that present themselves in the Futures Market.

Notice the Higher low on this monthly Gold chart. Price action has started to show bullish signs this month after failing on the three separate occasions to break the higher low that has been formed at the $1530 level.  I have long term targets at the prior high at around $1900 but price has to clear the monthly 8 MA.

With the weekly Gold chart below we can see how we got 3 Bottoming Tails after price bounced off of the same level where we recently got a Triple Bottom( you might have to click on the picture to get a clear picture of the candle formations I am referring to). These candlestick formations are all very strong bullish reversal signs and the fact that we got all these reversal signs on the weekly chart gives them even more significance which means we should pay even closer attention to this commodity along with Silver. If price clears the weekly 20 at around $1656 we will have wiped out all of last months price action and should have no problem reaching the prior high on the monthly at $1900.

Notice the strength the bulls have shown on this daily Gold chart. The last candle that we got on the daily chart is one of the bullish candles we have seen in a while from the bulls. This candle indicates that the bulls might be ready to take over and flex their muscles for a while in an attempt to reverse the current trend.