Alexandria Minerals Corp ALXDF

RE:RE:Gold wacked again - $4 billion dumped

[goldopportunity]

pmforme said:
"Technical analysis in this environment is completely useless, if not laughable."


Totally disagree.  From the $1125 low of dec/2016, technical analysis tells us gold has had successive higher highs and higher lows.  In fact, technically, gold by a whisker exceeded april's high.  And that's probably why central banks, commercials, et al are heavily naked shorting gold.

But it won't work.  Again, using ta, you see the 50dma at $1260 -- chances are we see a bounce around this support level.  Now even if $1260 is breached, the next major support would be at the 200dma at $1245.  Which brings us to another important ta point as the $1245 area would represent a full fib (61.8%) retracement from this cycle's $1298 high to $1214 low.  Now I'm not saying gold will necessarily hit this level, but you can see how ta can give you a technical, non-emotional perspective as opposed to an emotional one.

Also, technical analysis clearly tells us the gold indices have under-performed the yellow metal.  So you could reasonably argue that gold stox would be past due to lead gold (in terms of valuation) past $1300 before the pog actually crosses this major technical resistant point.  

Technical analysis is like a roadmap where you can see where you've been, where you are and where you're likely going.  That's how I see it.    Jmvho.

p.s. all those naked short oz. of paper gold are going to have to be covered at some point.  It's not rocket science to speculate that the accompanying rally will be quite powerful.  :) 




goldopp