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Gold, like oil, has a key moving average that signals whether the precious metal is in a bull or a bear market.
This line is the 65-week moving average (see Chart 4). Gold has been trading above this line since early 2002 and shows no signs of falling below it.
In fact, gold’s recent movements (from August 2005) indicate acceleration, not deceleration in the yellow metal. Gold could fall all the way down to $520 (current 65-week M/A level) and still be in a major bull market.
However, this is unlikely, because there is very good support at $600 to $620, and again at $575 (see Chart 5, next page), which is where gold found solid resistance in the 1st quarter of 2006, and support in June.
Chart 5 to be transmitted to you in the next 帖。 |
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