Gold closed down on Thursday. Is the start of something bigger? if so, I think the smart thing to do would be to add to positions at support. Where is that support? Let’s look at this chart of gold …
I’ve put some Fibonacci retracements on this chart. Fib retracements occur in nature a lot, and market technicians use them. I’ve also put the 20-day moving average of gold on the chart because that has served as support before.
You can see there is support at 1,007 and 987. And the 20-day moving average offers support at 1,022 — though it is rising. These would all be good points to add to existing positions or put on new ones.
If gold broke its 50% retracement on the daily chart, I’d start to worry. We’d probably be in a bigger correction then. But I believe any short-term pullback is a gift, a chance to buy before the Christmas rally I’ve been talking about really heats up.
Related Posts
- Transcript for Today’s Video: Opportunity in Gold Miners (11/03/09)
- New Charts on Gold — Short-term Pullback? (02/03/09)
- Gold Chart — Brace for Pullback (09/27/09)
- Is Gold Poised for a Pullback? (01/06/09)
- Transcript for ‘Opportunity in Gold and the Dollar’ Video (02/23/10)
{ 6 comments… read them below or add one }
Sean
I track the GDX and I am looking for the same possible pullback. I’m using the STO-M trading system. Results are shown at dlbnext.blogspot.com second picture link on the right. But the problem here is the dollar. Washington has chosen massive delution of the dollar as the drug of choice. A rate hike might cause a bounce in the dollar, but it’s not showing up on the radar yet.
Thank you for all the good research you and others do at uncommonwisdomdaily.
Thanks for reading my blog, Doug. Good luck on your trades — it looks like you’re doing well. Best, Sean
Sean,
I just read an article titled “Obama Poised to Cede US Sovereignty, Claims British Lord”. This concerns and I quote “the [2009 United Nations Climate Change Conference in] Copenhagen, this December, weeks away, a treaty will be signed. Your president will sign it. Most of the third world countries will sign it, because they think they’re going to get money out of it. Most of the left-wing regime from the European Union will rubber stamp it. Virtually nobody won’t sign it.”
This article clearing states this will be the end of America as we know it today. The speech is by Lord Christopher Monckton, former science adviser to British Prime Minister Margaret Thatcher and took place October 15, 2009 hosted by the Minnesota Free Market Institute.
I quote again the author of the article “I came across verification of Monckton’s assessment of the new entity’s purpose:
“38. The scheme for the new institutional arrangement under the Convention will be based on three basic pillars: government; facilitative mechanism; and financial mechanism, and the basic organization of which will include the following:
World Government (heading added)
(a) The government will be ruled by the COP with the support of a new subsidiary body on adaptation, and of an Executive Board responsible for the management of the new funds and the related facilitative processes and bodies. The current Convention secretariat will operate as such, as appropriate.
To Redistribute Wealth (heading added)
b) The Convention’s financial mechanism will include a multilateral climate change fund including five windows: (a) an Adaptation window, (b) a Compensation window, to address loss and damage from climate change impacts [read: the "climate debt" Monckton refers to], including insurance, rehabilitation and compensatory components, © a Technology window; (d) a Mitigation window; and (e) a REDD window, to support a multi-phases process for positive forest incentives relating to REDD actions.
With Enforcement Authority (heading added)
© The Convention’s facilitative mechanism will include: (a) work programmes for adaptation and mitigation; (b) a long-term REDD process; © a short-term technology action plan; (d) an expert group on adaptation established by the subsidiary body on adaptation, and expert groups on mitigation, technologies and on monitoring, reporting and verification; and (e) an international registry for the monitoring, reporting and verification of compliance of emission reduction commitments, and the transfer of technical and financial resources from developed countries to developing countries. The secretariat will provide technical and administrative support, including a new centre for information exchange [read; enforcement].”
This is a lengthy article with several links to back up the information. I’m listing the link where I read the story but one of the other links in the article gives the actual video of the speech. Please take a look at this article and interpret what it means to the us as investors.
http://www.standeyo.com/NEWS/09_USA/091016.Obamas.cede.sovereignty.html Scrolling past the information for the page you will see the stories for Oct 16,2009. It is the third article down the list.
Thanks,
Jerry
Can you transate your two potential pullback prices for gold into $ buy points for GLD & GDX ? Thanks, Lionel.
To Jerry:
Unfortunately your link to the “Minnesota Free Market Institute” article is also tainted with the typical
right-wing extremist slant. Here’s one of those right-wing extremist links that is spreading this story:
Your story is being reported on a site called “The Right Wing News.com” so what really to believe here. Next you’ll be one of those saying Obama isn’t an American citizen!
Here’s that link:
http://rightwingnews.com/2009/10/lord-monckton-warns-of-obamas-copenhagen-threat/