FTSE #DOW #GOLD We’ve some puzzlement about the price of Gold – and Bitcoin! Conventional wisdom used to suggest, when markets relax, Gold would strengthen. However, weakness since late April has seen the price of Gold essentially flatline. But Bitcoin has reached our target , growing 20%! Is Bitcoin the new Gold?
It’s funny but when searching for images relating to Bitcoin, invariably graphic design people opt to make the fake coin look like a gold coin. And now, when we witness markets such as the DOW, Germany, FTSE, and even Japan relax, it’s against a backdrop of Bitcoin strengthening.
If this is the case, there’s a pretty fair chance something interesting is about to happen.
Our last report against Bitcoin postulated the 6,000 dollar level as pretty important. In the last few weeks, the price has moved from the 5,000 mark to the 6,000 level and our usual logic suggests some hesitation in Bitcoin at this point. At time of writing, it’s at 6,065 and we’d been arguing for 6,034 – close enough! But the big question we’re asking is simple;
If Bitcoin hesitates, will the markets show recovery?
For this (POTENTIALLY DAFT) theory to be correct, we need to see the FTSE exceed 7234 today, Friday. This triggering movement should permit recovery to an initial, utterly unimpressive, 7244 points. Perhaps more useful, our secondary if such a level bettered, calculates at 7272 points. If triggered, the tightest stop is 7192 points – yesterdays low.
As always, we’ve a converse movement scenario.
Below 7192 now allows for 7180 points and hopefully a realistic bounce. There’s a big problem awaiting if 7180 breaks as our next calculation allows for a bottom at 7085 points. If triggered, the tightest stop is at 7244 points.
Have a good weekend. For us, it’s paella time and the Spanish GP!
|
Time Issued |
Market |
Price At Issue |
Short Entry |
Fast Exit |
Slow Exit |
Stop |
Long Entry |
Fast Exit |
Slow Exit |
Stop |
Prior |
|
10:09:15PM |
BRENT |
70.01 | |||||||||
|
10:11:06PM |
GOLD |
1284.48 |
1279 |
1276.175 |
1272.19 |
1287 |
1289 |
1297.635 |
1308.12 |
1279 | |
|
10:12:59PM |
FTSE |
7251.14 |
‘cess | ||||||||
|
10:15:51PM |
FRANCE |
5357.8 |
‘cess | ||||||||
|
10:18:38PM |
GERMANY |
12076.75 |
‘cess | ||||||||
|
10:21:04PM |
US500 |
2871.52 |
Success | ||||||||
|
10:30:24PM |
DOW |
25815 |
25555 |
25416 |
25200 |
25880 |
25927 |
26065 |
26253 |
25724 |
Success |
|
10:34:13PM |
NASDAQ |
7584 |
Success | ||||||||
|
10:36:43PM |
JAPAN |
21310 |
Success |