The Case for a Correction in Gold

goingbroke

Anyone long gold, silver or PM stocks should be thinking of tightening their stops and for the gold bugs to mentally prepare them selves for a correction.Text In short, I feel precious metals are on the verge of a sharp correction which may only last a few days, but the drop will be substantial more Looking at the weekly chart does give me a red flag for the intermediate price of gold. While the trend is clearly up I can’t help but notice the rising wedge which is a bearish pattern. During an uptrend we want to see bull flags and pennants, not a grind higher forming a narrowing range. This grind higher could unfold much similar to the price action of 2005 and 2007 instead of a correction but I am leaning more towards a sharp correction because more people are bullish on gold now then they were during the June top.

pmcollectour

An honest chartists will have to admit that charts only tell you what happened yesterday, and can never 100% accurately
predict what tomorrow will bring. They are fun to analyze, but like a football game, analyze what was done on Sunday, can
never predict what will happen next Sunday.

Konahead

I hope you are correct. I am looking to add silver and gold before year end and a drop would make me . Buy the dips.

derryb

Go with your gut. If your gut is wrong, you will do better the next time because of the experience.

roadrunner

Gold looks like it put in a nicely symmetric 5 step bull flag from Wed-Friday. Now doing a less steeper one or a sym. triangle. While at first that 5 stepper looked impulsive, now I'd say it was more corrective. Gold seems to be churning now for another upward thrust to join silver....just my 2 cents. Yeah, be careful. Some of the better miners were getting whacked the past few days so nibbled on them (IAG for example: on news of a new CEO who is from the gas industry). GG, NGD, IAG, KGC all seemed to be on sale. Sold some NXG that had rebounded nicely since Friday. Aurizon (AZK) pulled back a bit more but would still like to see it another 5-10% lower.

I see where the Gold&Oil Guy is coming from. He also likes to buy after the first run up and pull back. The G&O Guy says that he is getting a preponderence of bullish sentiment from his inputs. On my side I see most analysts calling for a top. Both sides can't be right. From my own gold equities buying I've had little trouble this past year feeling when the bottoms were in. My biggest issue was being able to hang on long enough on each successive shakeout to eventually profit from that buying. And no doubt the miners (and gold) are quite far away from having bottomed in mid to late July.

roadrunner

ttown

Buy and hold...to late in the game IMO to take a chance you may just miss the move you've been waiting for all these years.

ProofCollection

The timing models are pointing toward a volatile day on Thursday. Although I don't think the correction in gold will be as big as everyone seems to be implying here.

I'm looking at and expecting gold at ~1290, with a correction back to ~1250-1260. Stocks will probably take a bigger hammering.

57loaded

we are still in Kansas (for now)

i'm with ttown

yellowkid

<< <i>An honest chartists will have to admit that charts only tell you what happened yesterday, and can never 100% accurately
predict what tomorrow will bring. They are fun to analyze, but like a football game, analyze what was done on Sunday, can
never predict what will happen next Sunday. >>



Other than that I believe charts can become self fufilling, this pretty much sums up my feelings about them. I am interested in watching this prediction which seems to be based entirely on technical analysis.

Cladiator

Well I just bought some silver so look for a drop in price soon.

mrearlygold

<< <i>Well I just bought some silver so look for a drop in price soon. >>




That usually happens after I take a mountain of the stuff in on trade and am too lazy to get rid of it right then and there