Remember the LORD for it is he who gives you the ability to produce wealth and so confirms his covenant... Deut. 8:18

Wednesday, March 21, 2012

Gold still down but seen recovering

People asked if they should take profits on their holdings of physical gold that they have bought much earlier ...?
Well, the answer is yes if you are in dire need of cash or if you can quickly trade other financial instruments that can yield better profits on a short to medium term.
No if you're just cashing out and sitting on it.
Chartwise (first) on weekly timeframe, gold hasn't broken below the trendline that started in 2009 although it has dropped below the SMA50 (not indicated).

Second chart on a 4 hour timeframe shows gold suffered a double plunge from 1788 US dollar at end Feb and has descended to current level of 1655.
Let's see if gold can breakout from this pattern in the next few days ...

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