Thursday, March 10, 2011

Back in an Uptrend

The thing about knowing that gold trades within a range is that you get to test support.  If one knows support, one knows the buy price.  Support is at $1407.

The top of the range, what is called resistance, is $1440.  We will most likely move to the middle of the range tomorrow, and then test support first thing Monday of next week.  Then it will find the middle, $1425 let''s say, before we know its next move.  Testing support is hpw the game goes.

I would sit back and see if support is tested once more.  If it was I would make a position at $1407 that was half of the cash I wanted to spend.  Then I would see if it tested it once more, for the third time.  Gold often tests support three times before moving to its resistence level, and considering the volatility in the global markets, I am sure it will this time.

Long term trend is still in line.  I want $1650 within the month, and I think, as I have often said, that breaking $1440 with authority will trigger the next move in all things of real value.

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