Wednesday, June 4, 2014

Precious metals, commodities

Traders know the price will change in the different markets. Precious metals, commodities, and currencies are all subject to the same movements of supply and demand and news especially gold.  Many will often see prices drop or go up after a company meets expectations for news. The demand for the shares prior to the release overwhelmed the supply. Sellers will see this and move up prices they were asking for shares. Buyers in  an attempt to own shares, will raise the amount they are willing to pay for them.  The Stochastic Oscillator indicator indicates where prices are closing within a range. You can see the changes in price as this type of news happens.
If precious metals, commodities, and currencies are showing a bullish trend that traders expect to continue they would expect the share price to close at or near to the high of the day or the high from several days. If price closes away from that high, then the buying pressure has weakened, or selling pressure gained. Thus  it is not good for the traders holding the precious metals like gold, commodities, and currencies long. If there is a close that occurs far from the highs, it would show a sell signal on the oscillator.
Precious Metals Gold Investment