Warning: Creating default object from empty value in /home/customer/www/optionpundit.net/public_html/wp-content/themes/salient/nectar/redux-framework/ReduxCore/inc/class.redux_filesystem.php on line 29
Gold, Oversold - Learn to Trade Options | #1 Options Trading Education

Gold, Oversold

Published on August 13, 2008

Gold, Oversold

August 13, 2008

Gold is oversold, that’s the theme of this post. Through yesterday, gold has been down and down, almost everyday since hitting high in Mid July’08.

 Attached chart has a simple technical analysis and both RSI and MACD are in the oversold area. Each time we saw this low, Gold rallied approximately $70-$75 in following weeks. $800 is another strong fib support area. But before you jump into a straight trade, pls do your due diligence. Gold can be very volatile and is open to currency fluctuations as well as uncertain market climate.

Gold has been on a downward move ever since Fed decided to leave rates unchanged and so did the ECB. Dollar strengthened vs Euro resulting in a sell-off in metal and commodities. But I think the recent sell-off is overdone. It temporarily broke 800 support yesterday, probably to wash-in-rinse the weak traders. Only coming days will be able to demonstrate if this was true.

There are couple of ways you may choose from, to participate for a bullish case. GLD,(a gold ETF), GDX (gold stock ETF), XAU (Gold/Silver index), HUI (Gold Index) or via gold futures. If you are an OPN subscriber, pls visit the thread for speculative bonus alerts on how do I want to play this move.

Leave a Reply

Facebook IconYouTube IconTwitter IconFollow Me on Instagram