Home› Precious Metals

is the correction over?

MoneyLAMoneyLA Posts: 1,825 ✭
in Precious Metals
Ive been publicly saying on my website that a 10% correction would take gold to about $1,100 an ounce -- and we got there. And now, with this morning's strong rally, I think it is safe to say that we have had our correction, tested the 1,100 support level, and the bull can continue.

I didnt think the bull market was dead with a correction to 1100, but I was concerned that we might fall to 1,000 which was the critical support level.

ideas?? and Happy new year!
Cheers, Alan Mendelson
www.AlanBestBuys.com
www.VegasBestBuys.com

Comments

  • gsa1fangsa1fan Posts: 5,566 ✭✭✭
    All the real big gold traders got back from Christmas break.

    I base this on statements from around Dec. 15th 2009 when a Barracks spokesman said they were through for the year.
    Avid collector of GSA's.
  • secondrepublicsecondrepublic Posts: 2,619 ✭✭✭
    Strong movement up today in everything. Palladium in particular is on a tear recently.

    The correction was, in my opinion, always based on lousy U.S. dollar fundamentals thus didn't have much of a head of steam.
    "Men who had never shown any ability to make or increase fortunes for themselves abounded in brilliant plans for creating and increasing wealth for the country at large." Fiat Money Inflation in France, Andrew Dickson White (1912)
  • cohodkcohodk Posts: 19,109 ✭✭✭✭✭
    A retrace of the downmove would put GLD at around 110.75. So far nothing more than a bounce.

    didnt think the bull market was dead with a correction to 1100, but I was concerned that we might fall to 1,000 which was the critical support level

    You are convinced that the pattern shows a reverse H&S which projects to $1300, so why would you be concerned? Or do you not have faith in the pattern?
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • CaptHenwayCaptHenway Posts: 32,128 ✭✭✭✭✭
    Apparently.
    Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
  • moonshinemoonshine Posts: 1,039 ✭✭
    I do not know the answer to that question, but I did notice that gold did not get 'much' below the 1100 mark. I think it will slowly steadily rise, with probably a few more dips in between. I can see it getting up to 1350 or so, but not sure how soon.

  • jmski52jmski52 Posts: 22,835 ✭✭✭✭✭
    There's a correction going on? I don't even consider the $1224 to be a blip, nor do I consider current price levels relevant.

    Today's price action might have something to do with this cold snap and the rising price of crude, along with the perception that China's economy is still cooking.

    Yeah, I guess..................
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    This current move down starting back the first week in December probably has more time to put in. Gold had a solid first leg (or double leg) down to $1074. Now some type of bounce back to the $1130+ range might be in order. Once we get that bounce out of the way then the down move will resume back to $1050-$1075...or even something lower. This is the typical ABC pattern that gold usually follows. More than likely we are now in B. The entire correction could last another week or two or much longer. While 12.5% seems pretty severe so far taking it to 16% would certainly be reasonable.

    This link shows the last 3 major gold corrections in their various phases. The stochastics are already into their bounce phase. If this follows the more often seen pattern, prices will pull back yet again.

    Gold's previous corrections

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
Sign In or Register to comment.