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MPTrader - Gold Losing Luster But Not Yet Violating Support

Commodities / Gold & Silver Aug 16, 2007 - 01:14 PM

After a week of exhibiting great relative strength, spot gold prices -- and with them the streetTRACKS Gold Shares (NYSE: GLD) -- finally caved in to the intense selling pressure exerted by "the liquidators": those managers and investors who bailed out of the precious metals to raise cash, likely to meet anticipated margin calls, etc…or merely to preserve capital during very tumultuous times.

Be that as it may, from a strict technical perspective the sideways 5-month upper coil from the February 27 high within the larger coil off of the May 2006 high at 731.25 remain essentially intact at this time. However, a violation of the prior near-term coil support point at 639.10 will start to inflict much more serious damage to the gold pattern.

By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction

© 2002-2007 MPTrader.com, an AdviceTrade publication. All rights reserved. Any publication, distribution, retransmission or reproduction of information or data contained on this Web site without written consent from MPTrader is prohibited. See our disclaimer.

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Comments

Sherman McCoy
16 Aug 07, 21:48

Gold px

If you think gold is going down meaningfully. Please sell me your gold, so i can add to my massive position. I've been building it for 9 years and won't be shaken out by weak longs who need to sell something to meet a margin call.

The only people who trade their way to a fortune do it by being part of the 2 and 20 herd. Real men don't use stops.

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