Gold: Is it Safe To Buy?
Has gold proven that the bottomsare in? Is it safe to buy gold at these levels? We may have to check withDustin Hoffman and Sir Laurence Olivier from the movie Marathon Man.
Gold has certainly done a lot oftechnical work and appears to have made higher lows within the consolidationlevels. Our $1,180 level held and then the higher low of $1,190 held, all goodsigns for gold.
Gold is building a solid base andmaking higher lows. The concern here with gold popping $10 on Wednesday is willit be able to break through the $1,220 resistance level? We would expect thefirst trip to fail but more importantly we are focusing on buying at the higherlow of $1,200.
The bottoms appear to be in andbuying at the right levels appears to be safe. Although we expect a failurefrom $1,220, we expect the $1,200 level to hold and are buyers there. Thefootprints indicate that gold is safe and looking for buy levels is the correctstrategy from here.
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