Our intermediate-term technical indicators (not shown) remain on our October 16 sell signal, but gold’s decline is getting close to our initial downside target at its important intermediate-term 30-week m.a., which is currently at $1,671 an ounce.
The short-term indicators also remain negative, but with potential trendline support just below at approximately the same level as our initial downside target.
That support appears to be solid and gold does tend to be positive in the first few months of a new year (but not always).
However, at the same time we have to be aware that gold has been in a very long-term secular bull market. And they do tend to end when no one is expecting anything more than another pullback that presents a buying opportunity.
So we won’t jump the gun on our intermediate-term indicators.
To read my weekend newspaper column click here: Will Fiscal Cliff Defeat Market’s Favorable Seasonality-
Subscribers to Street Smart Report: There is an in-depth ‘Markets Signals and Recommendations’ update from Wednesday in your secure area of the Street Smart Report website. And an in-depth ‘Gold, Bonds, Dollar, Commodities’ update from Monday.
The next issue of the newsletter will be out next Wednesday.
Images: Flickr (licence attribution)
About The Author
Sy Harding publishes the financial website www.StreetSmartReport.com and a free daily Internet blog at www.SyHardingblog.com. In 1999 he authored Riding The Bear – How To Prosper In the Coming Bear Market. His latest book is Beat the Market the Easy Way! – Proven Seasonal Strategies Double Market’s Performance!