Monday, April 18, 2011

Gold April 18th, 2011

World Gold Index for April 18th, 2011.  Based on a fiobonacci retracement / projection that I had drawn last week, there was potential resistance at the 1470 level.  That apparently did not provide very much resistance as Gold has easily gone through to a closing price today of $1491.

Gold is trading above all three moving averages of 15, 50 and 100.
Stochastics are flirting around the upper level near 70/80.
It is trading along the upper Bollinger band.
RSI is overbought at 81.

If Gold should continue on it's bullish trend of higher highs and higher lows, the next short term fibonacci level is around the $1532 level. 

Silver continues to climb and closed at $43.40 and continues to defy the odds with an RSI reading of over 70+ since April 4th. How long can it remain over 70 is anyone's guess. A pullback is probably due, but with the high demand combined with other 'bullish' factors may just provide a shallow pullback for investors and traders to get back in.

One last chart to view which is the US Dollar Index....  Not much to review here aside from the bounce today as the Dow/S&P/Nasdaq were all major losers.

Quite a few of the Gold and Silver stocks have been under performing the physical metal. I've heard on some radio shows that some hedge funds are shorting junior Gold and Silver companies but are long the physical metal.  They must be really good at trading because shorting a Gold or Silver miners while the metal is going up is not a great combination IMO.  But what do I know, I'm not a hedge fund manager or a professional trader.

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