Wednesday, December 8, 2010
Gold finished down for the 2nd day to the 1383 level which is right on the 13 day moving average. (Why do I use a 13 day for the short term moving average? Because it's a Fibonacci number). Gold still has higher lows until it closes below the 1350 level. This would pierce the lower support trend line and a larger correction may be in the works...? The MACD Histogram and Stochastics are turning down which suggests lower prices.
If your long, there is nothing to worry about and this may be a buying opportunity for those that are not in the market yet. If your a trader of Mining stocks, this may be more serious as some of these stocks can take large downwards swings in one day wiping out short term gains. I am still in the camp where Gold will rally into the end of the year.
Silver closed on the 13 day moving average as well,,,hmm is Silver following Gold? The last break low was 26.40 on Nov 26th. Silver is still technically in an uptrend until the last break low is pierced. The next support area is the lower trend line which is just a little above the 26.40 level.
Like Gold, the MACD Histogram and the Stochastics are heading down. Nothing to worry about if your a long term holder. Swing traders may want to take some money off of the table if the 26.40 level is pierced.
Labels: Silver Gold December 8th 2010