#Gold Bulls Run Into Sticky #Fibonacci Resistance @KiraBrecht

From Kitco News

Technical Trading: Gold Bulls Run Into Sticky Fibonacci Resistance

(Kitco News) - December Comex gold futures charged into early morning action Monday with a firm bid. Action over the last two weeks has shown the bulls are in charge of the near term trend. A "V" type of bottom has formed on the daily chart in the wake of the strong October 6 "bullish reversal" day. Also, the gold market is trading above its 20-day and 40-day moving averages, which is a positive technical signal. See Figure 1 below.



But now, gold bulls are testing initial 38.2% Fibonacci retracement resistance, shown in Figure 2 below. This Fibonacci retracement is drawn off the July 10 high to the October 6 low. The first retracement point —or 38.2% comes in at $1,246 per ounce. Currently, the bulls are "testing" that resistance zone. A solid push through the 38.2% retracement point would open the door to additional retracement targets at 50% ($1,265.40) and then 61.8% ($1,284.80).



On the downside, important chart support points are seen at $1,232 and then $1,222. The bulls need to defend those support floors to keep the near term technical bias bullish.

Bottom line? Gold tested and found strong buying interest at long-term support in the $1,180 area in early October. A near term bottom has formed on the daily chart. Daily momentum studies are generally rising and positive, but the market has run into initial Fibonacci retracement resistance. This zone could act as a "sticky" ceiling in the very short-term. But, if gold bulls are able to post a convincing close above the first retracement point, near term trend followers will become emboldened. Monitor chart supports at $1,232 and $1,222. As long as those support floors hold firm, the bulls have the edge.

By Kira Brecht, Kitco.comFollow her on Twitter @KiraBrecht

Gold Bulls Run Into Sticky Fibonacci Resistance | Kitco News



The MasterMetals Blog

@MasterMetals

$GDXJ #gold December adds still outperforming

From BMO: Quantitative Execution Services
Monday, October 20^th  

GDXJ gold December adds still outperforming

 

Since last week's announcement the GDXJ junior gold additions have outperformed by ~5%.   The index change will cause the addition of larger gold companies into the GDXJ ETF in December.  

 

See up to 15 new additions to GDXJ

We currently see 13 eligible additions and 2 close to the threshold.   The actual event is far-off but considering the sheer size it is not surprising there is already impact.  The GDXJ will need to buy ~10% addition floats in December or approximately U$800M.  

 

Will like behave like the GDX rebalance in 2013?

This index change reminds us when the GDX Gold ETF allowed for non-US listed companies to be added in September 2013.  It was also a significant index change and we saw the adds outperform from announcement (August 2013) until several weeks past the rebalance.  

 

See below for chart of GDXJ adds vs GDXJ and table with company specific performance.

 

 

 

#Tamar: Another deal signed to bring #Israeli #NaturalGas to #Egypt - #MasterEnergy

How times change: Pipeline carried gas from Egypt to Israel for several years until
saboteurs began thwarting the flow through Sinai pipeline explosions.

By SHARON UDASIN 

10/19/2014 13:48

A man points as he stands on a tanker carrying liquified natural gas,
ten miles off the coast from Hadera. (photo credit:REUTERS) 

Turning the tables on the region’s natural resource flow, Israeli gas
may soon surge southward through the Egyptian pipeline that for several
years provided gas to Israel – but fell victim to saboteurs in Sinai.

The
developers of the 282-billion cubic meter Tamar reservoir, which has
been supplying gas to Israelis since March 2013, have signed a letter of
intent to sell 2.5 b.cu.m. annually to the Egyptian firm Dolphinus
Holdings Limited, the Delek Group reported to the Tel Aviv Stock
Exchange on Sunday morning. This gas surplus sold to the Egyptian firm
from Israel’s local supply will begin serving private industrial
consumers already in 2015, according to the partners.

The move
looks to revitalize Egypt’s East Mediterranean Gas Company pipeline that
for several years carried gas from Egypt to Israel. In 2008, EMG began
supplying Israel with about 40 percent of its natural gas provisions,
until saboteurs began thwarting the flow through Sinai pipeline
explosions. Following 14 months of such attacks, the Egyptian government
formally terminated the agreement between EMG and Israel in April 2012.

At
Tamar, located about 80 km. west of Haifa, Noble Energy holds 36% of
the basin. Delek Drilling and Avner Oil Exploration each own 15.625%,
while Isramco owns 28.75% and Dor Gas owns 4%.

The neighboring
621-b.cu.m. Leviathan gas reservoir, about 130 km. west of Haifa, is
expected to begin flowing in 2017. Noble Energy owns 39.66% of
Leviathan, while Delek Drilling and Avner Oil – both subsidiaries of the
Delek Group – each own 22.67% and Ratio Oil Exploration holds 15%.

The
realization of the project will help maximize the production
capabilities from the Tamar reservoir, and will strengthen the Israeli
economy by increasing tax and royalty revenues, said Delek Drilling CEO
Yossi Abu.

Sunday’s announcement joins a number of other regional
agreements and understandings that the Tamar and Leviathan partners have
signed with Israel’s neighbors.

In September, the Leviathan
reservoir partners signed a letter of intent to sell 45 b.cu.m. of
natural gas to Jordan’s National Electric Power Company over a 15-year
period.

Empty liquefaction plants in Egypt have become an
attractive option for Israeli gas. The British Gas Group signed a letter
of intent with the Leviathan partners for the 15-year supply of 105
b.cu.m. of natural gas to its Idku plant.

Meanwhile, in early May,
the Tamar reservoir partners signed a letter of intent with Spanish
firm Unión Fenosa, for the provision of 71 b.cu.m. to that firm’s
liquefaction facility in Damietta.

In January, the Leviathan
partners signed their first export deal – a $1.2b. sales agreement with
the Palestine Power Generation Company.

According to the
agreement, PPGC is set to buy around 4.75 b.cu.m. of gas over 20 years,
to fuel a future 200-megawatt power plant in Jenin.

A month later,
the Tamar reservoir partners signed a $500 million deal to provide 1.8
b.cu.m. of gas to the Jordanian firms Arab Potash and Jordan Bromine, to
power their Dead Sea facilities for the next 15 years, beginning in
2016.

As far as Sunday’s letter of intent signed with Dolphinus is
concerned, this latest deal is “another important link in a sequence of
agreements that will enable the supply of natural gas to the domestic
market in Egypt,” said chairman of Delek Drilling and CEO of Avner Oil
Exploration Gideon Tadmor.

“I have no doubt that these are agreements that will strengthen the relations between Israel and its neighbors,” Tadmor said.

Read the article online on the Jerusalem Post website here: Israeli partners sign bid to sell natural gas to Egyptian firm