To 321gold home page

Home   Links   Editorials

Gold - A Rare Isolated Low

Technical observations of

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)


-Bob Hoye
Institutional Advisors


Hoye Archives

The opinions in this report are solely those of the author. The information herein was obtained from various sources; however we do not guarantee its accuracy or completeness. This research report is prepared for general circulation and is circulated for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized.

Investors should note that income from such securities, if any, may fluctuate and that each security's price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. Neither the information nor any opinion expressed constitutes an offer to buy or sell any securities or options or futures contracts. Foreign currency rates of exchange may adversely affect the value, price or income of any security or related investment mentioned in this report. In addition, investors in securities such as ADRs, whose values are influenced by the currency of the underlying security, effectively assume currency risk. Moreover, from time to time, members of the Institutional Advisors team may be long or short positions discussed in our publications.

321gold Ltd