Monday, February 27, 2006

Technical Talk, With Merv Burak

In his weekly spot on Kitco.com, Merv gives us the goods, on where he sees gold for the short and long haul:

For week ending 24 Feb 2006

"Despite a few volatile days the four days of trading this past week were basically lateral. Unfortunately, we may be in for a period when sudden world events may command the attention of gold speculators so be prepared for possibly more than normal volatility."

GOLDLONG TERM

"Well, the sky still hasn’t fallen so disaster is still not yet upon us, but who knows what tomorrow will bring. Looking at the long term charts of gold, P&F or the various bar charts, they all seem to look the same with barely any hint of trouble ahead. It’s only when you look deeper that things start to get murky. The P&F chart is still far from any reversal point but also some distance from new highs. The trend may be more lateral for some time, within wide up and down yo-yo moves. Despite what I may think, we still have that very bullish momentum reading that has caused previous moves to come to an end and take several months before recovering. When will it really start its reaction period? All indications are that it has started but the charts are just not highlighting it yet. Things are more obvious on shorter term charts."

No comments: