Possible Gold Bounce Setting Up
June 23rd, 2009WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
Gold is right around a its pennant support line. I also drew a “last change” pennant support line on the chart, in case it decides to pay attention to that one.
If gold breaks down and out of this pennant… Well, as the gold bugs know, nobody said it was going to be easy. As usual, I won’t sell even one gram.
Also, gold longs should know that if a breakout higher occurs, the move could run into trouble because the all time low on the dollar is still likely to be in place, with $1032 looming overhead on gold.
Gold has to clear $1032 and the Them will do anything and everything to prevent that from happening. The more time that passes with $1032 in tact, the more investors will start to worry that the “top” is in… Blah blah this isn’t worth worrying about just now, but if that pennant breaches to the downside and you’re in too heavy with a shorter term outlook, you could feel some pain.
Very near term, however, a bounce is likely.
