Price has found support at the 907 level and is currently trying to move higher on the daily chart. If that level is broken you would be looking for 885 and then 864 as price objectives. For price to make a move higher on the daily chart price would have to go through 935 and then you could look for the 966 level. The price on the 15 minuter chart reached the 119 price objective noted in the chat room during the day. The 916-917 level indicated in yeaterday’s post was hit early. Each price objective first acts as resistance and then acts as support. When a price objective is reached you should look at your indicators and see if it is telling you that the move is over. If so, exit the trade and look for the next trade. Right now there is downside pressure being applied to this chart and the price objective for the down move is 909. Look for some support at the 910 level.
Ira
The daily chart has downside pressure being applied to price and the entry price for a move lower would be 118-24 with P at 116-04. The upward price action was stopped by PO2 at 121-15. The up move isn’t voided yet and the second price objective would be 122-29. The 15 min. chart looks a little better. Pressure is trying to turn up and apply upward pressure on price. The 119-28 area offered resistance and on this move higher 119-20 and 119-24 could be stumbling blocks. 119-10 should offer temporary support. If that level is broken then look for 119-01 for your next stop.
Ira
Take any dozen good reasons for being bearish right now and they still don’t equal the bullishness of the chart shown. The undeniably compelling rally objective is 13085, a 4.8% move from current levels, and one can only surmise that the dusting the 12158 midpoint received on the last pullback (12/28) all but clinched a finishing stroke to the higher number. Moreover, it implies that bears shouldn’t get their hopes too high even if, in the next few days, the Dow plummets 324 points to retest the midpoint support. As of now, that would signal not weakness, but a screaming opportunity to get long. Hard to believe, really, but that’s what the charts say.
There may be a short term turn coming in the grains if soy is an example. Price is oscillating around the 10.30 level and the downside possibility would be 9.72. If 10.93 is hit you could get some real fireworks. (IT)
The dollar doesn’t look very good here. Selling is forcing it lower after finding temporary support at the 79 level. If 80 is hit on this move, look for support at 79.60, and if that level is broken 79 could be next. (IT)
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Why Does Gold Get No Respect?
by Rick Ackerman on July 10, 2009 12:01 am GMT · 21 comments
(The following is the second part of a series of articles by Chuck Cohen, one of the smartest investors we know. After the series concludes on Monday with ”Gold as Insurance,” Chuck will be contributing to Rick’s Picks on a regular basis, focusing in particular on opportunities in junior gold stocks. RA)
Even after the recent rally, the stock market is still down about 35% since 2000, while the price of gold has risen almost 400%. It seems logical, at least to me, to expect investors to have become a little intrigued towards gold. But strangely, that hasn’t been the case. Inexplicably, the long-term view towards stocks remains remarkably upbeat, as though the alarming problems of the past two years have vanished. Just look up the very recent Barron’s “Big Money Poll,” or read the comments of the same economists who never » Read the full article