Tuesday, February 07, 2006

Violent market forces at work

It was a violent correction for the precious metals and their mining shares. Gold broke down of a head and shoulders pattern and the downtrend was consistent all day long, Silver support is around the 9.30 $ level. Gold is already 28$ lower from its most recent top and the correction is already somewhat overextended in my opinion. Nothing goes straight up and violent & volatile market should be expected, physical holders need not worry at all while futures traders should be very careful!
I have annotated one and four hour charts for gold spot. Click on the charts below to enlarge:



gold spot chart
gold spot chart

1 comment:

emini trading said...

Enjoyed reading your blog.

Regards,

Active Daytrader
emini trading
http://www.daytradingcourse.com

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