I am not a financial adviser so you should not take any part of this blog as being financial advice. Observing and interpreting charts is a hobby and so is this blog. The information in this blog is just my opinion, it may not reflect reality. Stock market investing is risky - you can lose all, or potentially more than all of your money given certain market conditions. Not only can you lose a lot of money buying shares, you can also lose a lot of potential profits by selling shares at the wrong time. So please do not buy or sell shares because of information in this blog. Whether you buy or sell shares is your decision as is the decision when to buy and sell. Do not risk any money you cannot afford to lose. Do not risk any money if you do not fully know and understand what you are doing.

Wednesday, October 19, 2011

Gold's correction may not be over

Gold is not looking like it is ready to attack the all time high anytime soon. In fact the converse seems true - the rally seems to have run out of puff after retracing 38% of the decline from the all time high. The targeted support level seems to be around $1450 (Comex). The stochastic is back in over-bought territory and has turned down and to top it off, candlestick analysis has now given a sell signal. The $1450 - $1500 area seems a much more solid place from which to launch a serious rally again being where the 4th wave of the lower degree ended - a common place for a correction to end.
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