Gold Update

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

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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

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