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Gold Update

By Colin Twiggs
April 2, 2008 12:00 a.m. ET (4:00 p.m. AET)

These extracts from my trading diary are for educational purposes and should not be interpreted as investment or trading advice. Full terms and conditions can be found at Terms of Use.

Gold

Since yesterday's newsletter, gold has fallen through support at $900.

spot gold hourly chart

Penetration of the long-term rising trendline warns of a secondary correction. The metal is likely to find support at $850 in the short-term, but could go as low as $775 in the next downward leg.
spot gold daily chart

The weekly chart shows that gold experienced a similar correction in mid-2006. And we may see a similar consolidation to establish a new base this time. The primary up-trend remains intact and would only be threatened if there is a fall below support at $775.
spot gold weekly chart

Source: Netdania



Let him buy one-fifth of his full line. If that does not show him a profit he must not increase his holdings because he has obviously begun wrong; he is wrong temporarily and there is no profit in being wrong at any time.

~ Jesse Livermore in Edwin Lefevre's Reminiscences of a Stock Operator

To understand my approach, please read Technical Analysis & Predictions in About The Trading Diary.



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