Friday, January 23, 2009

Could be the Real Breakout in Gold (GLD)

After a series of head fakes much of the past half year, the most watched move in the market might finally be "real" this time. With all the world's printing presses going on overdrive, and currencies being mocked - gold "should" of been rocketing. Many theories persist on why it hasn't but really it does not matter. The price action is all that matters and this type of movement will get the technicians very interested.

Things to like
1) a series of higher lows
2) the trendline of lower highs has been penetrated

Things to see for confirmation
1) any pullback is bought
2) price prints over October 2008's highs, signaling the end of "lower highs"

When last we looked about 6 weeks ago [Dec 11: Dollar v Gold - Can we Trust this Change?] , it was just another headfake - this formation on the chart does look more promising.

These are 2 names; one in gold and one in silver we've had our eyes on.

Or just play it simple and go double long gold

Disclaimer: The opinions listed on this blog are for educational purpose only. You should do your own research before making any decisions.
This blog, its affiliates, partners or authors are not responsible or liable for any misstatements and/or losses you might sustain from the content provided.

Copyright @2012