 CHARTWORKS - SEPTEMBER 25, 2008
Gold - A Rare Isolated Low
Technical observations of RossClark@shaw.ca
Bob Hoye
Institutional Advisors
Sep 27, 2008
It goes without saying that the volatility in the markets is at levels not seen in decades. In the case of the gold market the slide to $740 on September 11th generated short term oversold buy alerts that we assumed would give an immediate lift back towards immediate resistance at $795 to $810. However, the move straight through to $915 without any hesitation created a pattern we have previously identified and labeled as isolated lows.
The RSI(14) is into overbought territory so look for a quick two to four day correction followed by a churning market. The midpoint of the August 11th to September 8th consolidation ($815) is the critical support over the coming months.
Isolated lows identified with red box. Subsequent midpoint support identified with Blue line.
Previous examples
(Click on images to enlarge)
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-Bob Hoye
Institutional Advisors
email: bobhoye@institutionaladvisors.com
website: www.institutionaladvisors.com
CHARTWORKS - SEPTEMBER 25, 2008
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