Thursday, August 27, 2009
STUDY THE PREVIOUS LONGER TERM CHARTS TO SEE HOW WHERE WE ARE RIGHT NOW FITS INTO THE BIG PICTURE
Study the various trend channels and highs that gold
has to exceed to move higher. Gold will break out of the
large yellow downtrend channel to higher prices but will
find resistance at each of the previous highs on the way up.
Within all that, we still need to use the fibonacci retracement
points as a guide to where gold will pull back both up and down
as it stairsteps higher so we can take advantage of our gains
without giving up any profits along the way when gold gets
bashed down at the Crimex each day as a regular occurance.
Gold must break soldily through 960 and close up there to
move up to 980, 1000 and beyond
HOURLY S&P500 CHART (delayed prices)
Stocks have formed a down flag which should resolve up.
It may, but I think it's time for a major sell off
NOT MANY BUYERS SHOWING, GOLD IS STALLING ONE TICK BELOW THE PREVIOUS HIGH
Usually when the price doesn't rise to meet the sellers price,
they will lower their price to meet the market. So far, the
sellers are planted firm two ticks about the previous high
and not budging.
NOTICE THE 260 SELLERS AT 95250
A lot of sellers can keep gold from rising, unless the buyers
gobble them up. Then gold can jump a good bit due to
buying pressure. It takes buyers to offset sellers. Quite
often, a lot of sellers bunched up can indicate a gold spike
about to happen
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