Honest Money Gold and Silver Report: Gold Bull Alert

By: Douglas V. Gnazzo | Thu, Dec 18, 2008
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Gold Bull Alert

Intermediate Term Trend Change

Gold closed above the important $850 level. This re-establishes gold's intermediate term trend as bullish. Further confirmation is needed with a weekly close above $850.00.

As long as gold stays above $850 the intermediate term trend will remain bullish. Short term anything can happen.

The direction of the dollar is of major importance for gold. If the dollar continues down - gold will continue up. Gold will fall if the dollar goes back up.

Gold's daily chart shows a powerful right-angle ascending triangle formation with a breakout above resistance marked by the horizontal line at $825.00. Price has closed above its 200 day moving average as well.

Gold may be a bit overextended short term and in need of a consolidation before advancing on the next major move, which will be an assault on $1000 and $1200 later in 2009.

The weekly chart shows gold bumping up into overhead resistance as marked by its downward sloping price channel and its 50 day moving average.

Will support at 78 hold?

Short term the gold move is becoming extended, while the correction of the dollar is approaching support. The dollar may hold initially, but not over the intermediate term. Too much debt is being created and it is pressuring the dollar down.


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Douglas V. Gnazzo

Author: Douglas V. Gnazzo

Douglas V. Gnazzo
Honest Money Gold & Silver Report

Douglas V. Gnazzo is the retired CEO of New England Renovation LLC, a historical restoration contractor that specialized in the restoration of older buildings and vintage historic landmarks. Mr. Gnazzo writes for numerous websites, and his work appears both here and abroad. Just recently, he was honored by being chosen as a Foundation Scholar for the Foundation of Monetary Education (FAME).

Disclaimer: The contents of this article represent the opinions of Douglas V. Gnazzo. Nothing contained herein is intended as investment advice or recommendations for specific investment decisions, and you should not rely on it as such. Douglas V. Gnazzo is not a registered investment advisor. Information and analysis above are derived from sources and using methods believed to be reliable, but Douglas. V. Gnazzo cannot accept responsibility for any trading losses you may incur as a result of your reliance on this analysis and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Do your own due diligence regarding personal investment decisions. This article may contain information that is confidential and/or protected by law. The purpose of this article is intended to be used as an educational discussion of the issues involved. Douglas V. Gnazzo is not a lawyer or a legal scholar. Information and analysis derived from the quoted sources are believed to be reliable and are offered in good faith. Only a highly trained and certified and registered legal professional should be regarded as an authority on the issues involved; and all those seeking such an authoritative opinion should do their own due diligence and seek out the advice of a legal professional. Lastly, Douglas V. Gnazzo believes that The United States of America is the greatest country on Earth, but that it can yet become greater. This article is written to help facilitate that greater becoming. God Bless America.

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