Sunday, September 21, 2008

Looking To Buy Dips In Gold



If you look at the above chart of GLD which is the ETF for gold, you can clearly see that the uptrend has not been broken. In fact, you'll notice that GLD has recently successfully tested a significant support level and is now moving higher.

You'll also notice in the lower panel that the stochastics indicator is on a buy signal. Everyone of these stochastic buy signals has led to significant rallies in the gold market over the last 5 years and I see no reason to question the validity of this signal now.

IF GLD dips, I will be a buyer and I'll try to hang on for a move back up to the $100 level.

2 comments:

katzo7 said...

Hi Kevin,
I like your analysis on gold but I hope you mean $1000, not $100 as I am long GDX.
Kurt

Anonymous said...

Where do you see key support on gold prior to dumping your position ?

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