Wednesday, November 4, 2009

Gold And The GLD Daily Evening Star Long-Legged Doji

GLD Daily - Clear as day doji. Busted way above the upper bollinger band. Indicators need some work, but the candlestick as compared to the volume says massive confusion.

GLD weekly - Triangle target has been met. Living outside the upper BB. RSI getting toppy and S Sto is embedding. Bears can't gain any traction. EWI thinks gold has possibly completed an ABC pattern (but warns of a possible 5 wave move up).

GLD/SLV comparison - Well, if trends hold true is it time for GLD to pause, move sideways and for SLV to make its run? This is pure trend speculation and I have not backed it up with anything but a trend.

Bottom line is I think gold is due for a pause in the action. I am not going to speculate on a pullback till the indicators confirm my thoughts. Then, we'll have to see if the silver run up trend confirms the top.

NOW - all that being said (I have called for a possible pause soon and a sideways move in gold) please read The New Gold Floor from Zero Hedge. The trading actions, mainly by India) have possibly caused a new upper floor in the price of gold (a $5bn purchase at these prices will have that effect). I am actually looking for a long entry into gold and will hopefully get a pullback to make that play.

GL trading.


  1. Thanks DE, comments from you mean a lot and are appreciated. Nice to know you still visit.

  2. Shanky:

    You say that you are looking for a pullback to get into gold, but Daneric has gold in a primary 5 wave completion (though I am curious what he has for the cycle and supercycle in gold). These seem contradictory. What do you think of his count, which he put up yesterday? Thanks.

    Herschel Talker

  3. HT - Maybe the definition of pullback and huge drop are confusing. I would not consider a move to the 920 to 830 range a huge pullback and DE did not give a target. You should expect a minimum 38% retracement of the 5 wave move in a 3 (or ABC) and then another 5 up is possible. DE has a 5 and I may disagree with him and EWT there (as to the specific point of the top, but would find it hard to go against them).

    You can't disagree with the indicators and what they say, so I follow them and not any specific count (as I have mentioned I do count but always use TA first which is what makes me different). So, If I see the indicators allow a little more room for upside (say 10+%) I may take a shot at it. I'm really interested in SLV though as it should (if trend holds) really pop.

    Another thing about gold is the "floor" mentioned in the ZH post I linked to. Gold is not rational right now. Fear is growing. Hell, it makes sense to buy gold here or on any pullback given the economic circumstances IMO.


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