MontesDeOca said, “Gold closed at $1178,” which was below the 9-day moving average of $1241. Therefore, he said, “The trend momentum is bearish.” However, he warned, “if the market moves above $1241, that would negate this bearish trend momentum.”
The 9-day moving average is one component of a series of factors that make up the Academy’s VC Price Momentum Indicator, which MontesDeOca uses to trade, as well as uses to coach and teach self-guided investors wishing to learn how to use the Indicator for their own trading.
The VC Price Momentum Indicator also uses a weekly moving average, which this past week was at $1180. MontesDeOca said, “The market closed below it ($1180), therefore the market is bearish.” However, he said, “If the market closes above $1180, it would negate this bearish trend.”
MontesDeOca stressed that the Academy seeks to teach its subscribers how to use this algorithm to identify the short-term to intermediate trends in the market. The Indicator shows which way momentum is moving and where to take short or long positions, as well as where to put stops and when to exit the market.
The last Academy report recommended, MontesDeOca said, “To look to take profits on shorts into any correction at the buy one and buy two levels at $1160 to $1142, and to go long on the weekly reversal stop.” The VC Price Momentum Indicator also recommended, if you are long at $1160 to use $1142 as your stop–close only–until cancel order.
MontesDeOca said that the December 2 Academy report, “Gave us two sides of the trade; the supply zone with a high of $1190 and gave us the low of $1158.” He said, “It’s been a pretty volatile day,” largely due to the Italian decision to leave the Euro.
He said that the weekly signals are matching “pretty much” the daily signals, which is called a “harmonic convergence or alignment” and has been taking place for the last three or four weeks. MontesDeOca said, “The market needs to close at $1190 in order to confirm and complete that the bottom of the gold market has taken place. We continue to feel that…it is looking to make a final bottom, and that bottom has been tested in the $1160 area.”
The goal of the Equity Management Academy is to provide a select group of investors with the tools and information to invest wisely and well for the long-term in these tough economic times. For more information about the Academy and Patrick MontesDeOca, please email email@example.com or call 805-418-1744.