Long Term Oscillator Points Towards Gains in Gold
A long term oscillator, known as the Coppock Curve, points towards gains in gold. Figure 1 is a monthly chart of gold with the Coppock Curve in the lower panel. The Coppock Curve is currently trading below the lower trading band that looks for statistically significant extreme readings over the prior 36 month period. The Coppock Curve has been popularized as a long term oscillator that has worked reasonably well at identifying bull signals in the Dow Jones Industrial Average.
Figure 1. Gold/ monthly
For the past 12 months, gold has been consolidating the nearly 100% gains that took place over the prior 2.5 year period from 2009 to mid-2011. Currently, we find the Coppock Curve in an oversold position and below the lower trading band. Prior instances (since 1998) of the Coppock Curve being in a similar position are noted on the chart. Long term price projections suggest that gold could make it to the $2500 level.
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Category: Gold
My Father read the original Barron’s article on the Coppock Curve in the early 1960s and made a career out of using the indicator; thus, I am very familar w/the oscillator. However, as a technician I am not familiar with the trading band overlay. Can you point me to an article/name of the bands? I’d like to do some research.
Thanks
Allen Hahn, CFA, CMT
Hi Allen
Dynamic Zones by RINA systems (if they are still around –I don’t know)
The bands allow you to look for extremes in the indicators; you pick the look back period and set the level you are looking for
In a bull market it is a good friend