Thursday 21 July 2011

The seatbelt light is on

A bitter fight at the $1600 round number level, before
a blast-off into new highs and blue skies?

Or a head-and-shoulders top, pressaging a short-to-medium-term
breather and a welcome buying opportunity?

I'm hoping for the latter!
But I won't be too disappointed if it's the former.


Freegolds said...

out of ammo .. fired last salvo at 1050 euro.. but. if they knock it down to 1080 euro.. i could use the SCR.. strategic cash reserve

DP said...

Computer says €1080 and then €1050.

Computer is often a liar though.

DP said...

Looking at the side-by-side of $gold and €gold, we're close to invalidation of the euro H&S possibility I guess. But it looks to me like both are still potentially in play. Perhaps we should wait to reserve judgement until, say, 3rd August -- who knows?

I notice the gold chart in ¥ and SF are interesting (potential double tops?), and also AUD (cleaner potential H&S than € and £?).

Patience is the watchword. Which, fortunately, is much easier when you're neither at the All Inn, or All Out.

DP said...

I dunno, I take a couple of days off blogging to spend time with visiting family, and it all kicks off! :-D

Seems like we have an answer on the above question at last...

DP said...

So the question now is: is it liftoff, or do we get a rest to consolidate the breakout? Who can know for sure, but let's take a look at a chart to see if we can maybe get a steer...

RSI and STO are suggesting perhaps a pullback are not entirely out of the question at this point (but by no means a given), plus also the Bollinger bands indicate again that a pullback isn't out of the question (but by no means a given), and also the moving averages are somewhat left behind. Technically, $1550 doesn't seem like it would be out of the question (but by no means a given).

However, when you are living in interesting times, technicals often go out of the window. So... "who knows!" :-)

DP said...

You can get an update of this same chart from Stockcharts, here.

DP said...

Checking in for a checkout...

RSI: H&S top?
STO: Just cut down through 80, going lower?
Bollies: WIDE apart, and at the upper band.
MA's: WAY behind current action.

Hmm, you might think I'd be a seller looking to buy back later at a much lower level, based on these technicals. Technicals, schmechnicals: this is gold we're talking about!

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