Tuesday, January 10, 2012

Gold enjoys rebound from 200 DMA support level

Gold is up over $25.00 this morning on stronger commodity news, and a strengthening Euro.  The yellow metal rebounded back over the 200 DMA support level and appears to be consolidating for the next run after a 30% pullback.

Remember when various economics professors and self-anointed Ph.D'ed market timers said to sell everything because the gold 200 DMA had been breached to the downside, never to be crossed back again, to which our simple retort was, "Many are doing their damnedest Ph.D.-best to somehow fuse economic theory and technical charting, and state that a breach of the 200 DMA in gold is indicative of imminent price collapse.
So much for technicals. Sure enough: less than a month later, and $100 higher, gold is right back above the 200 DMA. Oh, and we expect to hear nothing from said academics for a long time. - Zerohedge

Chart courtesy of Zerohedge

When it comes to gold and silver, there are a few names (Bob Chapman, Eric Sprott, etc...) that are worth listening to.  Everyone else... hasn't a clue to be found in their baskets of BS.


Post a Comment