Hurst Cycles Trading Software - Accurately Forecast Nifty and Stock Cycles

Tuesday, August 19, 2008

GOLD!!

Well folks...The GOLD bug has finally bitten me...lol :)

See chart below...I figure its in a nice ABC correction after which a good uptrend should start again....


Other reasons why GOLD should go up is flight to safety and inflation. Overall its a good a safe place to park some money. I believe we have some very tough times ahead and GOLD is a good place to park some money. I am buying GOLDBEES..No leverage...Bit by bit until I build a sizable position. Again note that this is a long term position without leverage so I will not be worried about short term price blips...



And we are very close to long term supports. The 770-740$ area is extremely strong support.

Buy the dips...



Watch out for my 2 next posts probably today itself where I will go over market thoughts and also take a look at the bigger picture....Tech and Funda...Will touch over GOLD again then.



Best.

5 comments:

Ilango said...

Your "Gold" chart with wave labelling is very good. If you present a similar chart with some technical indicators like RSI or MACD, it will be quite compelling like your earlier Nifty charts on the 9th August.Just a timely presentation for those who want to meet the festival demands.Thank you.

Lee said...

Ilango see it now..I have updated the charts...No interpretations on the indicators now...I will revisit this one after a few weeks as this is a long term call

Ilango said...

Thanks a lot, Lee. Though the indicators are in the oversold region now and bouncing, one more low(into its C5) should produce positive divergences. Accumulating slowly "Gold Bees" in small quantities is a good strategy, you have suggested. Simply great !

Lee said...

Ilango..exactly!...

Not planning to buy everything in one go...bit by bit only...For example I bought 10% at around 790$ levels...Rest bit by bit I will buy as we go by..I am expecting a long term bottom before end of this month...

Thank you for your compliments and comments...

Lee said...

Ilango..exactly!...

Not planning to buy everything in one go...bit by bit only...For example I bought 10% at around 790$ levels...Rest bit by bit I will buy as we go by..I am expecting a long term bottom before end of this month...

Thank you for your compliments and comments...