Wednesday, October 6, 2010

Gold Anyone?

The universally beloved. The Hulbert Gold Newsletter Sentiment Index, is at 59.2 , and Market Vane’s bullish consensus is just over 80 %.

 click to sharpen and enlarge
Note the negative divergence on RSI, and 5=1.
There are other measuring methods that target 1450 roughly, including 5=.62 0f 1 thru 3, however it is highly 
likely that the BULK of the Gold move is over. Certainly the intermediate term is subject to serious retracement.

So at this stage of the parabolic moon shot ANY  overlap of previous pullbacks ie 1313 from Monday Oct 4., would look terrible.Even the .62 retrace of the last move up from that level 1328, would be an early warning of a reversal.





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