-- Posted Friday, 21 August 2009 | Digg This Article
| | Source: GoldSeek.com
Dec Gold: Open= 941.2 High= 958.5 Low= 938.2 Last= 954.2 +13.6
Gold still continues to trade within a spiraling pattern on the charts, with the range in prices becoming narrower. Today’s positive existing home sales number gave the market a solid, sustained boost into the week’s close. The squeeze on the chart has become very tight in the past month, and both bulls and bears alike are getting whipsawed with the price movement over the past six months. With the trading pattern now established, the best way to play the market is with patience.
A breakout will occur in time and then one can jump aboard the trend. It will most likely be higher, but those who bought at $980 or $970 are still loosing money despite the U.S. continuing to lose value. Stocks are rising, the dollar is falling, and gold is neutral. The action is disconcerting, to say the least, if one has strong convictions about being a bull or bear but one should not have such feelings.
The objective is to not be 'right' as a bull or a bear but to simply be on the correct side of the trade. While one may lean to one camp or conjecture that the outcome will likely be higher/lower, the real meat and potatoes revolves whether the herd is pushing the market higher/lower. Over the past six years or so, the bull herd has won these consolidation battles and with the weakness in the dollar and strength in equities, it is probably only a matter of time before the bulls win out.
Traders should be ready to make a move in the market at this stage, but if aggressive traders are to make an early call on the market, have some protection in case the market breaks out in the opposite direction.
Review charts on these markets here www.britefutures.com. Remember that futures and options can be used for bullish or bearish positions; feel free to contact me to discuss trading strategies. Each contract/option = 100 ounces, a $1 move in a futures contract = $100.
To open an account and receive trading recommendations on gold futures or options contracts (also stock indices, energies, currencies, etc.), or to use our online paper trading service BriteTrak, contact me at tom@altavest.com. Visit www.altavest.com to request a Free Trading Kit. Keep in mind that there is risk of loss in all trading.
Thank you,
Thomas Hartmann
Altavest Worldwide Trading, Inc.
800 994 9566 x109
949 488 0545 x109
Fax 949 488 7625
-- Posted Friday, 21 August 2009 | Digg This Article | Source: GoldSeek.com
