Thursday, November 23, 2006

Why I Am Turning Bullish On Gold



I'm turning bullish on Gold because of the above chart..First of all, the TREND is up so that alone is a reason to buy this pullback which is now heading upward.. Notice how everytime the stochastics goes below the buy line and crosses back above it, the market continued to rally...thats what just took place over the last week.. Also notice that most major buys in gold takes place every 13 to 14 months...this last low is 14 months from the previous significant low.. I like the fact that GLD which tracks gold made a double bottom... Double bottoms in a bullish trend are usually reliable..It also appears that GLD broke the downtrend line and may now head higher... Only time will tell what will happen so lets keep an eye on this commodity.

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