Richard, I use two primary indicators to determine when the price of gold is short-term oversold or overbought, they are the 5 period commodity channel indicator and the 8 period fast stochastic....Combine that with a look at overhead on gold stocks like NEM, chart patterns, envelopes and bollingers, and you get a pretty reliable idea where people will start taking profits...I know one of these days, if we ever get the great bullmarket, we will have days of being overbought, and these indicators will be unreliable....But for now, stopping points on NEM will be 19.50-20.00, later 24.50-25.00....XAU=52.50-53.25, later 64.00 by April 15th or sooner...
Gold has done a good job on draining out my emotions....I just want to get the work done, let's get to 64 XAU, and then we will discuss more on what the future holds as we examine the charts further...
looks like that Kaplan guy may have been wrong on selling his gold...will see.... |
