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.

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.

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.

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.

	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. 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. 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. 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.	Share: A+ A− Incredible Charts 10.1 Windows software with proprietary trading tools and stock screens. Download 5-Day Free Trial Try it Now! Incredible Charts 11.0 Proprietary trading tools and stock screens now in your browser. Free Trial 30-Day Free Trial Try it Now! Trading Diary Free education, macro outlook and technical updates: Join Now
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