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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: nspolar who wrote (12402)	5/15/2002 2:08:22 AM
From: MechanicalMethod	Respond to of 36161

> Hard to find signs of a bottom There's those gap open mornings but I don't see them creating something that can be sustained.

To: nspolar who wrote (12402)	5/15/2002 3:08:07 AM
From: nspolar	Read Replies (1) \| Respond to of 36161

ODJ J.P. Morgan Technical Analyst Tells Customers To Sell Gold New York, May 14 (OsterDowJones) - J.P. Morgan Chase is recommending that some of its customers "close all longs in gold," in a technical strategist research note. The note argued that following gold's recent bout of strength, from a technical standpoint the metal appears overcooked and in need of a corrective retracement. "Weekly and monthly momentum indicators (are) overbought, (which) make the risk reward of holding longs increasingly unattractive, even given a still possible new high," it argued. "We continue to think that as long as $305.50 holds, (the $314-317 area) could be seen. However the lack of upwards momentum in recent days is a worry," it cautioned. "A break of trendline support at $309 would trigger a large head-and- shoulders pattern targeting $300," it said. "Daily momentum is mid-range still, giving room to the topside, however weekly momentum is now at levels that have seen $20-25 reversals on three occasions since last year's April $254.50 low." "In addition, monthly momentum is more overbought than both the October 1999 $341 high, and the Feb 1996 $418 high," it noted. "Given this momentum backdrop, we think it is time that more medium-term position takers start scaling out of longs, simply due to the fact that risks to longs are rising," it argued. "We may have that one last new high. However, our bias would be to sell such strength, or a break of support below $305.50 if we do not see the upmove," it added. ---