Big movements take time to develop... Men who can both be right and sit tight are uncommon. - Jesse Livermore
If you look at a long term chart for gold, you'll see it's forming a giant "wedge" formation:
If you look at a long term chart for gold, you'll see it's forming a giant "wedge" formation:
You can see the price of gold "basing" in the $1525 - 1550 area. Based on the huge import premiums vs. the world spot price in India, China, Indonesia, Viet Nam and other Asian countries, we know big physical buying countries are aggressively buying on every price dip. This is the physical gold that is removed from the global trading supply and disappears into the Central Bank and private vaults.
At some point, the paper trading markets in NY and London will not be able to contain the free market forces of supply and demand. In this country, February marked a record sales month for U.S. Mint silver eagles.
Finally, downward "wedge" formations like the one above almost always "resolve" with a big move to the upside. Typically, the size and duration of the move higher is proportionate to the length of the base of the wedge.
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GOLD CURRENT TRADE
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GOLD CURRENT TRADE
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Our Position
Bought 1Apr Gold on 28/02/2013
Bought 1Apr Gold on 28/02/2013
Entry: 1577
Stop Loss: 1552
YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
Do your own due diligence.
No one knows tomorrow's price or circumstance.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
King Regards
