Gold is now at my buy point of the rising long term trend support line (click on chart...). GLD touched that line 6 times, which signifies that this trendline is a reliable point of support. The significance of this line is that it is not steep, which also brings a higher probability that GLD will find support here. It is also oversold. Continued weakness here and a break below this long term trend would be troubling and highly unlikely. If there is a break most likely it would be exhaustive, meaning that it will shake out a lot of shares before the next move higher. I do not see $1200 as a top in gold as there are no technical signs of a major top.He also sagely notes that the best time to buy usually makes the buyer uncomfortable. To extend his winter-coat-in-summer analogy, it can be awkward sporting a winter coat around in the heat.
Wednesday, July 28, 2010
Jeb Handwerger Sees Support For Gold At These Levels
Unlike this Barclays techncial analyst, Jeb Handwerger sees gold as still in a rising channel that provides support at these levels. Consequently, he thinks gold is in buying-opportunity mode right now.