logo
  Join        Login             Stock Quote

Gold's Correction Already Near Our Next Target!

 February 22, 2013 02:41 PM


Our initial target at our October 16 sell signal on gold was $1,650 an ounce. The potential support there held for awhile, looking like gold might be building a base.

But our technical indicators remained on the sell signal, and gold has now broken to the downside from the symmetrical triangle formation within which it had been confined. As we have been noting the direction of such a breakout usually indicates the direction for awhile.

With the target of $1,650 having been reached and breached we told subscribers the next potential support is at $1,550, the level of its lows in December 2011, and June of last year.

[Related -Greek Voters Say No, Yanis Varoufakis Says Bye—What Next?]

Obviously many technicians were watching for the direction of the breakout from the triangle formation and jumped to the sell side with the breakout. Gold's plunge has accelerated.

But it is already approaching our next target. It is again short-term oversold beneath its 30-day m.a., which will probably bring some buying from those again trying to catch the bottom.

[Related -Is a Bullish Reversal Brewing for Bond Fund TLT]

We will just continue to follow our indicators and wait for their signal.

If the next potential support level does not hold, at some point it will have to be considered whether this is just a prolonged correction, or if gold's long bull market is coming to an end.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageGreek Voters Say No, Yanis Varoufakis Says Bye—What Next?

Sunday’s referendum didn’t change much for Greece: It is still in limbo, and it is still too small to upend read on...

article imageIs a Bullish Reversal Brewing for Bond Fund TLT

With stocks testing support and threatening a possible breakdown (reversal), US Treasury prices (measured read on...

article imageIn A World Of Artificial Liquidity – Cash Is King

It's more crucial now than ever for people to consider extracting a portion of cash from their bank read on...

article imageDid The IMF Provide Support To Syriza?

The IMF published yesterday a preliminary analysis on the debt sustainability of the Greek read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.