Wednesday
Sep082010
Will Gold Break Out?
Wednesday, September 8, 2010 at 05:41PM Since bottoming at the end of July, gold has rallied about $100/ounce. As shown below, the metal is now trying to break through its June highs. Gold got within a dollar and change of that high today before pulling back about $7. Needless to say, the next few days will be important for gold. If it can break to new highs, traders will be looking for a new leg up to a higher range. If it can't break out, the technicals will call for a move right back into its current trading range.
Reader Comments (8)
For the past eight plus years I have been reading predictions for gold, both positive & negative, and formed my own conclusions based on instinct more than prophesy. So far my instinct has prevailed to my advantage. As we go into the so called historical higher prices associated with the fall of the year I am reading more forecasts of falling prices than usual. I don't understand the switch in philosophy and somehow feel more nervous than at any other 3rd and 4th quarter period in the past several years. The fundamentals are all positive for continued advances according to my beliefs, but my intuition says maybe not this year. I hope I am wrong. Aries 89
as the stock market lolligags around from now until.....and interest rates remain low.....tell me what else makes sense to put your $ into as a safe bet for higher values in the future? especially if the present administration continues to print $!
The nervousness that most investors feel about the markets is probably due to the fact that we do not have true free markets.
By that I mean that those who logically analyze the economic situation come to the conclusion that gold and silver as REAL MONEY should balloon in value as more of the phony counterfeit paper is printed.The reality is that the markets are manipulated by the big players by huge purchases or withdrawing bids to take profits on up and down moves they calculate in advance, at the expense of the retail investor.
Because of the tax changes on selling gold which starts next year I would expect a sell-off at the end of this year, which might be a good spot to enter the market at.. Anyone else think that?
We are reaching a critical level, but would be careful of selling out on a short term pullback when we may be in the process of classical cup and handle breakout.
Cup and Handle Breakout
Trading in and out of precious metals in this bull market must be timed perfectly, otherwise you may miss major moves. We all know the market is manipulated, better to suffer some temporary downside moves than get shaken out and miss the major moves up. The way I see it anyway.
While the risk is high; if you think you can time the moves by the established patterns, i.e. a fall back after a $20 to $50 rise using inverse ETF's and you get it right, the profits can be spectacular. What I am saying is appropriate moves with ETF's to ride both up and down moves following DA BOYZ manipulations can be highly profitable if you get even close to the turning points.
The breakout begins today. Gold runs to a fresh all time high at $1270. Just buy and hold and stop thinking so much. I have 100% of my money in gold and silver stocks and bullion, and I sleep like a newborn.
Wow, for aries89, you've been reading predictions for gold?! That is so interesting. So you are so good at gold specific information, then. Cool. Well, my comment is that gold will always be gold no matter the price is.
John Campbell
John Campbell