Wednesday, May 03, 2006

Gold


Here is an hourly chart showing pit and electronic trading in June gold. I last commented on gold here.

The market is still holding above the long term resistance level at 661 which is the 2 5/8 multiple of the 1999 low at 252. The last reaction low on the way to today's high was at 655. I would regard a break below 655 as evidence that a drop below the 600 level has begun. I think this development is likely because of today's action in silver.

1 comment:

Gullswing said...

I was always told never to stand in front of a moving freight train. Out side of resistance points and maybe short term overbought/sold indicators-which are useless in extreme moves-what is there to indicate a top? Mr. Gann has alway mentioned these are the moves where one can make large profits. Why keep calling for a top and miss the move. Of course at some point you will be correct. Question is - is this the point?