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Buying gold during the so-called summer doldrums has been a winning trade for most of the last 34 years. This is especially the case in the last eight years as gold averaged a gain of nearly 14% in just six months after the summer low.
We tend to advise a buy and hold strategy for the majority of clients.
For those who have a bit more of a risk appetite, an interesting strategy would be to buy at the start of September, sell at end of September and then buy back in on October 31st.
This is obviously more risky as one will incur extra costs and risk the possibility of missing out on capital gains in October.
You got beef with just one of my lines or all of them?:
That's interesting Joules... Gold has a negative correlation with the USD does it not? I wonder if selling the Buck in September would have been a profitable strategy over time? Still, anyone who bought in May is definitely laughing at the seasonal buyers.
This is my first Gold chart/write up so I'm sorry if it's B grade:
We are trading within an ascending channel dating back to the beginning of August. We are also trading well above trend line support dating back to the end of June. We are currently retracing some of last night's gains but respecting this month's low of 1685 (1689, time of writing). I think we'll hit resistance at 1724, the March High, in the next week or so... Not sure where from there, good long term value either side (1920 and 1530).
If on the other hand, we've run out of steam and break 1685, next stop would be 1679 (50% Fib) and 1670 (61.8% Fib and channel support). Below the channel we have the 100% Fib at around 1643 and June trend line support at 1610 (and counting) - I doubt we'll be heading there just yet.
Thanks Joules, noted. IMO Lines are a priceless resource for identifying the trend, what a trader does from there is up to them. As far as support and resistance goes, combining fibs/trendlines/and actual (horizontal) levels will no doubt give you a better result than relying on any one method alone. I think we've all experienced situations where setting your stop to a horizontal level is just not feasible.
To quote an old crank once known as Amory Hill --> draw enough lines and you will hit something!
I favor closes/opens over wicks, there isn't a single 4 hour close above channel resistance and there isn't a single 4 hour close below trend line support. As i said before, when channel support is breached it becomes the new resistance. Channel Res/Support are Parallel, the lines trace the over all direction of price movement... I really don't see what your problem is as you refuse to list it or post your own 4 hour chart. I have no problem with people providing constructive criticism.
Russia has more than doubled its gold reserves in the past five years. Putin has taken advantage of the financial crisis to build the world’s fifth-biggest gold pile in a handful of years, and is buying about half a billion dollars’ worth every month.
He explains why he always supported the establishment of the Euro:
When it was only an aspiration, the European Union was what psychologists call a “phantastic object,” a desirable goal that captured many people’s imagination, including mine. I regarded it as the embodiment of an open society. There were five large states and a number of small ones and they all subscribed to the principles of democracy, individual freedom, human rights, and the rule of law. No nation or nationality was dominant. Although the Brussels bureaucracy was often accused of a “democratic deficit,” elected parliaments had to give approval of the major steps.
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