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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: sea_urchin who wrote (31912)	4/16/1999 2:17:00 PM
From: John Hunt	Read Replies (2) \| Respond to of 116764

Re XAU Support And Resistance Hi Searle, I understand the XAU and its components. It certainly mirrors and may sometimes even lead slightly the movement of large gold stock prices. My point was only about support and resistance ... The theory of resistance is that people have gotten into an individual stock and watched it drop without selling ... A certain percentage of them decide to sell if it ever gets back to the level where they bought it, hence the 'resistance'. Support is similar, based on people saying they wished they bought more and would buy more if it ever got back to the same level. The degree of support or resistance depends on the volume at any given price shelf. I am not sure if you can buy futures on the XAU, but if you can I don't think it is that actively traded ... as such, you don't have the above reasoning. Individual stock and resistance levels are not where they were the last time the XAU was at the same level. There is some support and resistance in the SPX and OEX because of the large number of futures and options traded. Of course, just my humble TA observations. Regards, John