 |
|
 HOME |
ARCHIVES |
FORUMS |
SEARCH |
SITE MAP |
ABOUT US |
|
| Home -> Archives -> Guy Lerner -> Gold...Why This Pullback is Different |
|
|
May 31, 2004 Gold...Why This Pullback is Different |
|||
| |||
All the postings this past weekend about gold have made me take second and third looks at the price action. There are a lot of persuasive arguments for and against the yellow metal. But let's put all the fundamental and geopolitical issues aside for a moment, and look at gold from a purely technical perspective. Figure #1 is a weekly chart of the price of gold. The only thing I have done to the chart is add a 5 bar moving average of price to clarify the price action. I have put lines under the down thrusts that formed support or pivot points. What should be apparent since the bottom was made in April, 2001 is that this current pullback is the first down thrust to trade lower than a previous pullback. In other words, support was broken. In classic technical terms, this an "M" type top. Support now becomes resistance which is about at $400. This is why this pullback is different! No other pullbacks violated a prior low. Figure#1/ Gold (weekly) Let's take another perspective and look now at figure #2, and ask yourself would this chart make me bullish or bearish. I hope you answered bullish. Figure #2 is a chart of gold inverted. Therefore, the only conclusion to make is that if you thought this chart is bullish then a chart of gold must be bearish. The trend has changed and it is down. That is The Technical Take! Figure#2/ Mystery Chart (weekly) The Technical Take $ gold in down trend $ resistance is at $400 Thanks for reading and I hope you have found my analysis informative, insightful and profitable.... If you would like more information regarding my methodologies, please contact me at blueguyzee@yahoo.com. 
|
|||
Guy M. Lerner Disclaimer: Guy M. Lerner is the editor and founder of TheTechnicalTake.com. His commentary on the financial markets is based upon information thought to be reliable and is not meant as investment advice. Under no circumstances does the information in his columns represent a recommendation to buy or sell stocks. Lerner may on occasion hold positions in the securities mentioned in his columns and on the Web site; in all instances, all positions are fully disclosed at http://www.thetechnicaltake.com. However, their positions may change at anytime. For more information on any of the above, please review TheTechnicalTake's full Terms of Use and Privacy Policy (link below). While Lerner cannot provide investment advice or recommendations, he invites you to send your comments to: guy@thetechnicaltake.com. Copyright Notice: Except for making one printed copy of this newsletter or any other materials, files or documents available from, accessible through or published by TheTechnicalTake, LLC for your personal use (or downloading for the same limited purpose), none of these said materials, files and/or documents may be reproduced, republished, rebroadcast or otherwise re-distributed without the prior expressed written permission of TheTechnicalTake, LLC. To view TheTechnicalTake's entire Privacy Policy and Terms of Use, please visit: http://www.thetechnicaltake.com/terms/. To View TheTechnicalTake's Copyright Policy, please visit: http://www.thetechnicaltake.com/copyright/. Copyright © 2004-2008 Guy Lerner Image rendition and html coding Copyright © 2000-2008 SafeHaven.com « BullionVault.com -- Buy gold online - quickly, safely and at low prices » « Opinions expressed at SafeHaven are those of the individual authors and do not necessarily represent the opinion of SafeHaven or its management. Articles are available via RSS/XML. Please visit RSSHelp for instructions. » |
Printer Friendly
eMail Article
Top of Page
DISCLAIMER
|
HOME |
ARCHIVES |
FORUMS |
SEARCH |
SITE MAP ABOUT US | LINKS | CONTACT US Copyright © 2000-2008 - SAFEHAVEN.com |
ColdFusion by COSTAS PILIOTIS Server Admin by DIGITAL ADMIN SafeHaven Web Site FEEDS  |