On Friday I put up a similar chart of gold and wondered whether I saw a potential trend line that could serve as support.So a couple of days later it appears to have held. Well that is nice but what is next? The trend line I have pointed to in both charts seems to have some relevance. If so, it makes sense to think it can be relevant a little while longer.
If you are looking for a quick trade I don't have much to offer. If you buy into the idea of gold as portfolio diversifier and you don't have any exposure, I think this may be a good point to enter.
6 comments:
Although I think there may be more pain to come in terms of their stock prices I can't believe the magnitude of profits the miners are reporting, in some cases triple or even quadruple same quarter a year ago. Base metals too. Some beautiful value plays shaping up here once things calm down a bit.
If I was a betting man I'd also wager there are going to be fewer hedge funds a year from now too -- looks like some of that speculation in metals derivatives is unwinding fast -- but if a gold, sliver, aluminum, copper or zinc producer can make a good profit at one third current prices I'd say there's room for error on the equity side.
Roger
I think Silver might show a higher rate of appreciation than Gold. Gold is already too expensive to keep going the way it has. I am not suggesting the Silver ETF, but buying stocks with exposure to both silver and gold might be a good way to go.
-- Faisal Laljee
...waiting for $54 on the GLD.
Roger I have to disagree with you here on gold. I am looking for gold to come back down to March lows before a good entry point will be in play.. This is a short lived bounce and not a longer term entry...
to anon,
I could easily be wrong. Its technical analysis, you could probably get five different opinions from five different people and they could all be wrong.
Roger-
I do not recognize that line you drew as a "support line"! It's ON TOP of ascending highs so that is the side to show RESISTANCE not support. Trendline support is off the lows of the cycle.
It's true that technical analysts could come up with different answers as to the meaning of momentum, oscillator readings, etc but you won't get any disagreement on this kind of thing.
Post a Comment