Two bullish events are occuring in gold this morning. One, is the penetration of the buy net-line at 810, although prices must remain above that level at the close for the signal to be confirmed. And two, is the cycle-trap turning up with divergence (green lines). I consider the cycle-trap divergence to be a highly reliable signal, although it’s implied target is only the top of the channel – a short distance to 836 from here. There’s net-line resistance at 843 as well.
It’s clear, however, that it doesn’t take a genius realize that the massive printing of money by the Fed to bail out so many Wall St. institutions is a big long-term negative for the dollar. Gold is stepping up as a relatively safe store of value in perilous times.
click chart to enlarge
1 response so far ↓
1 ramparikh // Sep 17, 2008 at 12:36 pm
Chris,
What is your opinion on Silver, do you think it ready to take off as well.
Looking forward to your new report.
Thanks.
RAM
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