Where's Gold Going?
October 1st 2008 18:07
The last three says have been wicked with volatility. Not only was the DJIA down over 777 points one day and up 485 the next, but Gold went from a high one day of $926 to a low of $854 the next. At one point yesterday Gold was down $39! You know what, nothing has changed. The chart still looks bullish!
The low of 9/11 was $735.90. Six days later it hit $920. Since then, for eleven days Gold has traded basically between $855 and $905. A break below $855 probably gives us a retest of the lows. A break out the top, gives us an upside target of about $1040!
See Chart
Using Trading the Triangles, the Weekly chart is bullish, which identifies the trend. The daily chart, which is used for timing got us out at $862.62, and increase of about $90 per contract. Now we wait for a buy signal on the daily chart or you jump the gun, buy Gold now and use a stop below $855.
|How about Silver? Silver gave its last signal on the Weekly chart as a SELL on 7/24 at 17.29. It since has fallen as low as $10.28. You could have covwered your short at $10.94 or gone long 10.94 . Silver is currently at 13.52! Silver crossed the bearish trendline that started at $19. Fibonacci has resistance at $13.86, $14.932 and $16.038. Breaking above $13.86 would give me a target of around $17.
I continue to look at Gold and Silver as safe havens to protect myself from this market.
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