It’s time to take a close look at Gold and for that I’m going to use the XAUUSDO, which is the continuous gold contract.
I want you to notice this daily chart starts in December of 2009 and covers the high and low trades. I’ve superimposed a fibonacci retracement tool and right now we are at a critical point. If we go through $1,160, we break the parabolic stop to the upside and we will break through the 61.8% retracement level for the second time. A breakout gives a short term target of 1,260, a new all-time high. MarketClub Trade Triangles isalready bullish for the monthly reading since 2/11/09 at $929.50. The weekly reading gave a buy signal on 4/5/10 at $1.133.19 and just the other day on 4/21/10 the daily flipped positive at $1,145.19
I have maintained my long in Market Vectors Junior Gold Miners (GDXJ) and my long of Gammon Gold (GRS) and will add more on the breakout.
Good trading!
Glad to see you posting Mike. Yea the rally of gold should signal some kind of a correction in the equity market.
Missed this post earlier. In total agreement, we may pull back tomorrow and that is a signal to
buy junior producers and miners.
FYI: http://www.sprott.com Sprott Asset Management has just introduced a Gold stock and bullion
ETF and Mutual Fund that actually pays you on redemption in Gold or Silver bullion bars equal to
the value of your investment value at close. Eric Sprott is a maverick investor, when i had
his funds professionally manage my golds and hedge funds, he regularly rolled up gains of 30%
net of fees.
Very interesting Jimbho. I will check it out myself.
I’ve been reading the information on your site for quite some time now, just wanted to do a quick post and say thank you for all of the useful information you have been providing your readers all this time.