Comments: Looks like Gold is staying above $620 after a brief dip below. Gold stocks may be a buy upon a retest of the lower trendline or upon a breach of the upper downtrendline. The 135 XAU area may also offer support. Although the stocks are having a nice recovery rally right now, it's probably best to stay on the sidelines and watch a little longer. It seems a bit too quick for the consolidation to be over and today the minutes of the FOMC meeting will be released so there is always the possibility of negative a surprise there. Even upon a break of the downtrend, I think that the most likely event is a return to the previous high at 142.5, before further sideways consolidation.
Wednesday, November 15, 2006
XAU 5 Day Timing Chart
Comments: Looks like Gold is staying above $620 after a brief dip below. Gold stocks may be a buy upon a retest of the lower trendline or upon a breach of the upper downtrendline. The 135 XAU area may also offer support. Although the stocks are having a nice recovery rally right now, it's probably best to stay on the sidelines and watch a little longer. It seems a bit too quick for the consolidation to be over and today the minutes of the FOMC meeting will be released so there is always the possibility of negative a surprise there. Even upon a break of the downtrend, I think that the most likely event is a return to the previous high at 142.5, before further sideways consolidation.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment