#200. Gold Peak And Valley 5

Another Round Of Opportunity To Buy Gold Is Coming Soon Or May Be Even Now

The gold hourly chart

The above is the hourly chart of gold. The price reached the peak on 3 December 2009 and then dipped. Last night (10 December 2009), around 10:00pm the price broke through the top resistance line at point A.

Since then (point A), the price has been slowly trending up.

I think the correction is over. This is my guess.


The gold daily chart

Next, you can see the daily chart below.

There are a few things that we can see from the daily chart. As I have frequently said, a chart is an important tool. It tells a lot of things. A surgeon refers to x-ray and MRI scan. A sailor refers to his map. A violinist refers to his musical notes. A backwoodsman refers to the footprint tracks on the ground.

A good chart shows the tracks of the bears and the bulls. Let's see where the bears and bulls are.

1. While the climb up to the peak on 3 December 2009 was steep, the dive after that was steeper. This steeper the trend (whether it is up or down) means the sentiment is strong. If the dive down is very steep, it shows the bearish sentiment is very strong.

A steeper trend also shows that the move is always a panicky one. And the trend will not last very long. In this case, we see the steeper down trend has happened in shorter time than the climb up.

Picture yourself sliding down from a hill. The steeper the slope, the faster your slide will be.

2. The blue resistance line at the bottom is holding up very well. And I have also mentioned that we will see the third triangle forming. The last triangle is now clearer.


What happens next?

What next is everybody's guess. Whether we will drop further, or climb up higher.

Nevertheless, you can see the blue resistance line is in an uptrend showing that once the correction is over, we will continue the trend up higher.

Only if the price drops further and crosses the blue line then we will see the danger of further down trend.

Those who are still waiting to invest in gold, you may get ready. If you have high risk tolerance, you may even start to buy a small portion now.

As always, let me say, my guess is as good as yours. Do your own analysis and make your own decision, you are the investment guru.


200 articles

Unit-trust-investment.com has reached 200 articles!

Thanks to the support from you. Your comments and emails have motivated me to keep writing. To keep this site going on.

It's not monetary rewarding writing articles here. No donation pouring in even from readers who have made good profits (haha). Not much money made from advertising on the page.

But that is not important. I found that by putting my thoughts on writing, I am able to constantly focused on how to improve my investment. It keeps me searching for answers. As you have witnessed, we have moved from gold investment account to a more profitable gold miners unit trust fund. The coming 2010 year is going to be a very rewarding year.

It's not about the money. I am happy doing what I love. Investment and writing. I strongly believe that anyone who loves what they do will be successful. The reward will come later. For now, my aim is to make more accurate investment moves (the right time to buy and sell). Looks like a new year resolution. Yes, it sure is. Trade right and the profits will come.

In investment, it's not about how big a profit you want to take. Market does not move with you. I read in a magazine on investment, there are still people who invest and say "Right now my portfolio has grown 17%, I will take profit when it reaches 25%." Timing is more important. If 17% is the peak, then you must sell. The market does not move up further till 25% for you. You have to follow the market. And if the market can move up further to 30%, go with it instead of just stopping short at 25%.

In addition, talking on focus, I have also constantly sought out ways to improve the timing to buy and sell. I believe I am making progress in this area. You can see that I have abandoned the old unit trust investment method (buy-and-hold hoping for 13% per annum returns) and moving towrds smarter strategy. (buy-and-sell making more than 50% per annum returns).

Well, we will just see how it goes next year 2010.