Saturday, July 2, 2011

Confluence of technicals = ~1440 the summer bottom in gold?

The 1st chart shows gold has bounced of the 150 day simple moving average (SMA) since the summer of 2009.



The 2nd chart adds the Fibonacci retracements measure from each year's winter lows to spring highs. The rule is buy the 50% retracement. The target is the -23.6% retracement. The stop loss is a break of the 61.8% retracement.

Will gold repeat 2010 of where the 150 day SMA meets the yearly 50% retracement to mark the bottom for gold? I think so. I will be a buyer in the 1425-1450 range. If I am wrong and gold breaks 1400, then I will still have extra USD's on standby to buy it even cheaper.

No comments:

Post a Comment