Gold is Not in a Downtrend
- Posted by Greg Harmon
- on October 25th, 2012
Two people will invariably describe the same picture two different ways. three people three ways. Ten people ten ways. It all depends upon your perspective. This rationale applies to using technical analysis to describe the price action in a chart as well. When I look at the chart of Spot Gold ($GC_F, $GLD) below I see a an 18 month consolidation after a more than 10 year uptrend. I
am sure you would be tired and need a rest after 10 years of running higher too. There is plenty of room back to 1550 before this turns to a bearish bias. But with a different perspective, in this case a shorter daily timeframe, it is clearly in a downtrend. The chart below shows a near perfect Tweezers Top October 5th and a march lower since. From this shorter perspective it seems that
the confluence of the Simple Moving Averages near 1660 is the next target and then the center of the previous consolidation near 1600 if it fails at 1700. But remember from the weekly view above, that is still $50 above where it would turn bearish. It all depends where you stand. So step back occasionally and gain another perspective.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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