Saturday, April 4, 2009

Short Gold Working Well; April 4, 2009

Gold continued lower after breaking and retesting the ascending trendline as projected. It fell right down to start testing the very tough support shelf of $890. This test should occur in full force Monday or Tuesday and as I said before, it should break through that support and cascade lower next week and perhaps for weeks. My initial target is $850 but there is much much more bearish potential into the mid-$600s, so I won't exit at a market order, I will just trail my stop down and let the market take me out so I can let my profits run.

I remain fully short with a new stop at $937 with a quick trigger finger to re-enter on weakness again if stopped out.

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