Tuesday, October 05, 2010

Gold (GLD) - The Rally Continues


The metals continue to rally as the uptrend is really beginning to accelerate now. At some point we will get a correction as my upside targets have been reached today for gold and silver.  For those of you who are long and looking to let profits run by trailing a stop, you might want to consider using the 20 day exponential moving average. This average has done a good job at containing all of the minor pullbacks since August so any close BELOW this moving average might indicate that a larger correction may be at hand.

2 comments:

Anonymous said...

It sounds like a reasonable suggestion. I'll continue to hold my position until the 20-day EMA is closed below. It'll be interesting to see just how Gold reacts when the dollar finally gets a bounce. The dollar could rise on proverbial European debt worries, but those same worries could continue to push Gold higher despite the strengthening of the dollar. 20-day EMA is therefore a good level to keep an eye on.

Anonymous said...

Hi Kev, would you care to give an update on the gold miners XAU especially if a correction is due

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