Monday, April 13, 2009
Gold Still Bearish, But I'm Protecting Profits; April 13, 2009
Gold broke above the $890 level and is holding above it. So far there are 3 waves up, which is a correction, in what looks like a small 4th wave. Also notice the bearish divergence on the last price high today that wasn't confirmed by the stochastic indicator at the bottom. But gold needs to give way to lower levels immediately. The break above $890 is concerning so I'm lowering my stop loss to the extreme of the prior small wave i at $911 shown in the 4hr gold mini futures chart above. Gold has been good to me and I'd rather lock in a small profit than let a good trade go bad due to greed.
So I'm still bearish gold but it needs to fall immediately to instill confidence in the view that it may hit the $600s in the coming weeks. To lock in profits I dropped my stop loss to $911.