Yes, I am positive about gold
. But don't forget the big picture. Above is the chart of GORO
, which has more than doubled since the beginning of 2016. The pattern I have highlighted is called a "Bearish Continuation Wedge". This indicates that if support is violated at about $2.22, the price could fall as much as 40% to about $1.40. If this gold
stock stays in an uptrend, the prices will continue to rise above the lower parts of the WEDGE
that has developed at around $2.40 to $2.50. GORO
has violated the lower portion of the wedge
8 times in the past two weeks. The bar-type oscillator on the bottom is warning me that the phase 2 pulse energy of the price action is weakening. The thick red double trend lines
are down. As you view the chart, look right to left, note that the Ichimoku Cloud
is lower. The current price of $2.50 is about a . 618 retracement
of where GORO
was in mid-October of 2015 ($3.20). For the record, I am positive on the outlook for gold
, but always be alert to where the vehicle you choose (stock) has come from. GORO
is up 100% since the beginning of 2016, and has violated a key wedge
pattern. The most important word for you today is "caution". After all, trees do grow to the sky.
I hope this has been entertaining, helpful, and informative. I also hope it saves you money. Yours for better trading, Don.