Gold Down as Traders Lock in Profits After Record Highs
October 3rd, 2007WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
“Use extreme caution if considering adding to long gold positions in the near term. There is a strong possibility of a pullback. If you are looking to lock in profits, tighten stops, or consider a stop target of $738. Consider long entries under $738 but over $721. Under $721, consider long accumulation using range strategies.”
—Cryptogon, September 29th, 2007
Thank you. I’ll be here all week. Tip your waitress.
I also wrote, “But how close to $721?”
$724 was the answer.
Now, who was buying this morning, besides me, on that 2 hour stochastic cross under 20 with multiple clusters of support at around $727, $724 and $721?
Other things I like: 1 hour MACD cross up, histogram slope positive, above zero line; 1 hour stochastics emerge from oversold…
“But, Kevin, look at the daily stochastics!”
Yes, grasshopper, and look at the weekly stochastics! Eek! While those are worrying, there are several supports intact on the hour chart. It was worth rolling the dice on a few grams with the strategic $721 level intact.
Now, looking at the weekly chart, it’s one of two things:
1) Either gold has reached a new baseline over the $714 to $721 zone, and that weekly ascending triangle is going to blast above $750
2) Or, new gold longs could be in for a good, old fashioned decapitation
The weekly MACD is looking good, the supports are looking good, but that stochastic is threatening to cross around 91… You wouldn’t want to see a full oscillation down on that thing, sending the price down through $721.
Let me consult my Magic 8 Ball.
Ahh yes… It’s saying to believe in the power of the weekly ascending triangle, but to watch out below $721.
But if it does break down, * pfft! * I’ll get to buy more lower.
Via: CNN:
Gold continued lower into the afternoon, falling by nearly 3 pct at one point, as the profit-taking bout extended itself amid a sustained rebound in the dollar.
‘The inevitable finally happened (today) … as contrarians put their money where they had put their words for the last two weeks, and sold this gold market fairly heavily,’ said Kitco analyst Jon Nadler.
But he added that the key question is whether or not today’s lapse is the start of a reversal for gold, or just a temporary blip in the strong upward ascent.
Here we go. It is very exciting to finally see gold responding to “market” conditions. As if there were any doubt that this is where to go. Something real; not on paper.
This was in my mailbox today:
September 28 – Gold $743.10 up $10.60 – Silver $13.73 up 24 cents
Gold Roars … Commercial Signal Failure … Highest Monthly Close Ever!!!
“Lenin is said to have declared that the best way to destroy the Capitalistic System was to debauch the currency. . . Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million can diagnose.” John Maynard Keynes
Anyhoos, I’m sitting here on the Fence -re buying- that Roth IRA of mine sure looks like a good place to raid for cash to gold to me right now.