Tuesday, April 5, 2011

Gold at important levels

Just a quick post about gold, which I believe is at important levels and has an important day or two coming up, at least from a technical viewpoint. I like the higher lows being formed here but at the same time, there is a possibility of a triple top being set up. The pattern is quite similar, though less volatile, to that formed in Nov- Jan (marked in the chart below) and that did not end too well for the gold bulls. There is also a negative divergence being formed on RSI and MACD.  For gold to sustain the momentum of the last few months, it needs a big day up. And soon. 


Take care and good luck!

4 comments:

Anonymous said...

Thanks for the post, any positions in gold ? Will you look to short or buy the dip? Thanks

positiontrader said...

I don't have any position in gold at the moment. I don't trade gold much as am not a big fan of the overnight volatility (just look at the number of gap ups and gap downs in the chart above!). The chart remains short term bullish as long as the trend of higher lows in maintained.

ppmoore said...

I think you got your answer LOL.

positiontrader said...

Certainly! Though I have to admit I did not expect it to be so soon and so emphatic!