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Can Gold Make It On This Rally Attempt?

  • Written by Syndicated Publisher No Comments Comments
    June 5, 2013

    The consensus of our technical indicators has been on a sell signal for gold since October 15. The indicators have been in what has tended to be oversold territory in the long bull market for gold, for several months now, but have declined further.

    There is a glimmer of hope in that gold’s Internal Strength did not confirm gold’s last low (Internal Strength made a higher low).


    And the short-term charts have some hope in them now. Although the rally attempts since October have all failed when they reached the resistance in the area around the 30-day m.a., and gold is in a clear pattern of lower highs on the rally attempts and lower lows on the pullbacks, the most recent failure bottomed at a higher low.

    That leaves a potential double-bottom in place in the current rally attempt.

    The financial media is referring to the round number $1,400 as being the important level. However it has always been the 30-day m.a. all the way down, and continues to be.


    So it’s interesting that gold spiked up to $1,416 twice in recent days and fell back each time. And at least at the moment this morning, it’s back down about $14 an ounce at $1,397.

    Those trying to catch the bottom have been repeatedly beaten up, and although it looks more promising this time, we would not jump the gun on our short-term and intermediate-term indicators.

    To read my weekend newspaper column click here:   Too Big to Fail Banks Certainly Have Not!

    Subscribers to Street Smart Report: There is an in-depth ‘Global Markets’ update in your secure area of the Street Smart Report website. There will be an in-depth ‘U.S. Market Signals and Recommendations Update’ there tomorrow.

    Images: Flickr (licence attribution)

    About The Author


    Sy Harding publishes the financial website Street Smart Report Online and a free daily Internet blog at Sy’s Free Blog. In 1999 he authored Riding The Bear – How To Prosper In the Coming Bear Market. His latest book is Beat the Market the Easy Way! – Proven Seasonal Strategies Double Market’s Performance!

    It includes our research and analysis on the economy and markets, and provides charts and buy and sell signals on the major market indexes, sectors, bonds, gold, individual stocks and etf’s, including short-sales and ‘inverse’ etf’s.

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    In depth updates are provided every Wednesday, with interim ‘hotline’ updates every time we make a trade. An 8-page traditional newsletter Street Smart Report is provided on the website every 3 weeks, in pdf format for viewing or printing out.

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