Gold has been interesting lately, I’ve seen a lot of comments on Twitter and Stocktwits as traders attempt to bottom tick the shiny metal during its downturn that began in 2011. I’ll often discuss charts both here on the blog and on Twitter that look at just the last year and various current setups taking place. However it’s often necessary to zoom out and look at the long-term trend and the implications it may have. Right now is the time to be doing this with gold. This is the topic of my TraderPlanet article for this week.
Here’s a piece:
Off the 1999 low the blue trend line has played an important role for gold traders. It acted as resistance during short-term advances in 2003 and 2004 and then we saw gold prices break above in late 2005 which began the strong bull multi-year advance that took us into the financial crisis. During 2008 as investors attempted to sell everything they could get their hands on, gold fell nearly 30% before finding support at this trend line.
Click over to read the rest and to see the trend line I’m referring to as well as the levels I’m focusing on for gold in the coming days/weeks.
Source: Gold Approaches A Critical Level (TraderPlanet)
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