Best Financial Markets Analysis Article I guess a lot of people wet their pants last night, as gold was down over 4% at some point. The chart incurred technical damage over the short term, and if current support fails to hold, gold could be headed for about $1,440 (or the equivalent of $140 GLD), as we will discuss later on.

Let’s first have a look at an article I wrote in August 2011 when I wrote: Gold 2006 vs Gold Today, Does It Look Familiar?

When we look at the following charts, we can see that the pattern is still valid so far.

The pattern would become invalid if gold fails to hold above the green support line without reversing soon.

Overlay:

In the nightly report of Tuesday night, I posted the following chart, indicating GLD might drop towards 152-153.

Last night, GLD hit a low of 152.05, and thus hit the target PERFECTLY, as we can see in the chart below.
The RSI is oversold on a daily basis, and volume spiked to panic levels.
Those are facts that should bode well for gold going forward.

If GLD fails to hold above the green support line, we can expect a drop towards $140.

When we look at the Bullish % index for mining stocks, we can see that it reached an extremely low level again at 13.79.
This should also bode well for both gold and gold stocks. However, the HUI might still retest the pink support/breakout line over the next couple of days…

However, if we would get a remake of 2008, even those indicators can’t stop prices from falling, so be cautious!

For more analyses and trading updates, please visit www.profitimes.com

Willem Weytjens

www.profitimes.com

© 2011 Copyright Willem Weytjens - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.