Thursday, 21 July 2011

The seatbelt light is on

A bitter fight at the $1600 round number level, before
a blast-off into new highs and blue skies?

Or a head-and-shoulders top, pressaging a short-to-medium-term
breather and a welcome buying opportunity?

I'm hoping for the latter!
But I won't be too disappointed if it's the former.


Freegolds said...

out of ammo .. fired last salvo at 1050 euro.. but. if they knock it down to 1080 euro.. i could use the SCR.. strategic cash reserve

DP said...

Computer says €1080 and then €1050.

Computer is often a liar though.

DP said...

Looking at the side-by-side of $gold and €gold, we're close to invalidation of the euro H&S possibility I guess. But it looks to me like both are still potentially in play. Perhaps we should wait to reserve judgement until, say, 3rd August -- who knows?

I notice the gold chart in ¥ and SF are interesting (potential double tops?), and also AUD (cleaner potential H&S than € and £?).

Patience is the watchword. Which, fortunately, is much easier when you're neither at the All Inn, or All Out.

DP said...

I dunno, I take a couple of days off blogging to spend time with visiting family, and it all kicks off! :-D

Seems like we have an answer on the above question at last...

DP said...

So the question now is: is it liftoff, or do we get a rest to consolidate the breakout? Who can know for sure, but let's take a look at a chart to see if we can maybe get a steer...

RSI and STO are suggesting perhaps a pullback are not entirely out of the question at this point (but by no means a given), plus also the Bollinger bands indicate again that a pullback isn't out of the question (but by no means a given), and also the moving averages are somewhat left behind. Technically, $1550 doesn't seem like it would be out of the question (but by no means a given).

However, when you are living in interesting times, technicals often go out of the window. So... "who knows!" :-)

DP said...

You can get an update of this same chart from Stockcharts, here.

DP said...

Checking in for a checkout...

RSI: H&S top?
STO: Just cut down through 80, going lower?
Bollies: WIDE apart, and at the upper band.
MA's: WAY behind current action.

Hmm, you might think I'd be a seller looking to buy back later at a much lower level, based on these technicals. Technicals, schmechnicals: this is gold we're talking about!

More commentary at the Facebook page

Visit the page to find more news, commentary and community... (Like the page and you'll also see comments on links above - jus sayin.)

Twits can also apply here...