Gold Yearly Report for 2017/2018 –
The Equity Management Academy has developed a proprietary trading system called the Variable Changing Price Momentum Indicator (VC PMI). The system recommends buying gold long if it passes $1253, with $1269 confirming a long-term bullish trend.
What is the recommendation based on?
First, the VC PMI analyzes the long-term trend momentum based on the 50-day moving average. Gold closed at $1288 on September 28, 2017. By closing above the 50-day moving average of $1253, the market showed that the long-term trend momentum is bullish. If gold should close below the 50-day moving average of $1253, it would negate the bullish sentiment. The 50-day moving average is the first pivot point our analysts use to identify a shift in the long-term trend of the market.
Second, the VC PMI analyzes the price momentum of the market, which is the average price we expect for the following year. The VC PMI program calculates the anticipated supply and demand levels for the next day, week, month and year. We calculate what the extreme above the mean could be for the year and the extreme below the mean could be for the gold market. The analysis creates a structure for trading supply and demand based on the average price. The average mean price is $1264, which we call the VC Yearly PMI. The market closed above the average, which confirms that the long-term price momentum is bullish. If the market closed below $1264, it would negate the long-term trend price momentum to neutral.
Third, the VCPMI identifies the extremes of supply and demand for the next 12 months. If gold closes below $1264, it would negate the long-term trend to neutral. If that happens, we would expect to cover that bearish trend. We recommend that if you have any shorts, you should cover them on corrections of $1166 to $1044. If you are long, we recommend using $1044 as a long-term stop close only and good til cancel order. We suggest taking profits long term, as we predict reaching the $1386 to $1484 levels during the year between September 2017 and September 2018.
The VC PMI Trading System is available from the TradeStation app store. For more information please visit ema2tradelivesignals.com or call 800-418-1744.