Monday, November 7, 2011

Gold on a rally

 3 month daily chart of the World Gold Index.
 Gold has been on a rally since late October and is riding along the upper Bollinger band.  It is trading above all of the moving averages, 20, 50, 100 and 200 but the 20 day is still under the 50.  The 20 is trending up and may crossover the 50 by next week.... ?    The 20 day crossed over the 100 day 5 trading days ago.

The Stocastics are going to 'embed' with both the K and D lines over the 80 level for 3 consecutive days. Technically, Gold should continue to rally this week. 

Gold is up 26% year to date.  If it continues to rally for the month of November, look for profit taking in December by hedge funds, banks, Goldman Sachs, JPM, etc...  They will want to lock in their profits for the 2011 year to show their high end clients.  For the traders out there, keep your eye on the charts.

Long term Gold holders have nothing to worry about, just sit tight for a few more years....

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