Wednesday, April 8, 2009

Gold Tests $890, then Should Fall Hard; April 8, 2009


In a previous post I said gold might rally and test the underside of the $890 area before grinding lower and that's exactly what happened in the overnight session. The failure to break through above the $890 level should cause the remaining hopeful bulls wanting gold $2000 to finally give up and sell, sending this metal sharply lower.

I remain heavily short gold, but am watching that $890 level closely.

2 comments:

Anonymous said...

hi todd
i am from south africa and my english spelling is not 100%. i like you views of the market. i am still in the begining of trading, but was looking at gold developing a head and shoulder pattern, and i see the target at 790. would you say i must keep my target there or do you think the 830 target would be better.
another chart you must look at is suger if you want.
thank you for you views i look at it every day
have a nice day chris

Todd S said...

Hi Chris, thanks for reading the blog. Hope you get some use out of it.

Do you have a chart you can email me of the head and shoulders formation you're talking about? What time frame chart do you see it on? My initial target is the $830 area, but it has much lower potential on into the $600s possibly.

Todd

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