Unprotected from the Madness of Crowds | Home | What Happens When You Try to Cancel the Online Wall Street Journal (Part III)

April 29, 2008


Gold Hanging on by Its Fingernails

Everybody and his grandmother has been watching the key Fibonacci retracement levels in gold: $883.55 (38.2%), $837.47 (50%), and $791.40 (61.8%). If $883 fails then $837 should hold things. If $837 fails then $791 is surely in the cards.

The problem with guys like Jim Sinclair is they get religion and lose their objectivity. One of the most important traits that all good traders share is their agnosticism, or you could say, flexibility. You never want to get locked into one world view and start ignoring what the chart is telling you.


Click to enlarge (Gold, Spot price, Daily chart)

Related: Calling the Top in Gold… Again, March 22, 2008

This entry was posted on Tuesday, April 29th, 2008 at 5:25 pm (utc+8) and is filed under Metals.

9 Responses to “Gold Hanging on by Its Fingernails”

  1. Brian said:
    April 29th, 2008 at 5:46 pm

    tasty pattern with positive carry

  2. C. Maoxian said:
    April 29th, 2008 at 5:49 pm

    Brian: Watch it ramp straight up to $1650 from here. :-)

  3. Tom said:
    April 29th, 2008 at 6:11 pm

    I’ve been watching Gold too because with it hinges the state of the economy and the market. I’ve been debating “loading the truck up” or buying more stocks. Ah decisions, decisions! I guess this is what makes a market!

  4. ToddinFL said:
    April 29th, 2008 at 9:22 pm

    A breach of the 200 DMA and a re-test of the breakout down at $700 back in Sept. ‘07, followed by stagnant price action for a few months should be enough to wear out the weakest gold bulls.

    After that, we’ll see where U.S. financial policy is headed with President McCain. :)

  5. brandon said:
    April 30th, 2008 at 10:26 am

    CM: how much do you pay monthly/yearly for Bloomberg and do they offer any discount?

  6. C. Maoxian said:
    April 30th, 2008 at 11:12 am

    brandon: I pay nothing, but the first terminal is $1800 a month and every additional terminal is $1500 a month. They don’t do discounts — their customers tend to have money. :)

  7. jest1081 said:
    April 30th, 2008 at 12:05 pm

    Well tonight rates may decide whether the fingernails screeches the wall.

  8. Brian said:
    May 1st, 2008 at 11:51 pm

    so far so good ;)

  9. C. Maoxian said:
    May 2nd, 2008 at 6:58 am

    @Brian: Charts don’t lie and neither does Mr. Fibonacci. :-) (Sorry about your 4.5BB Citi comment getting deleted in the links post… until I figure out how to format that sucker, I’ll delete them every time).

Post your opinion