Monday, 26 September 2011

Has Gold topped?

I don't know. Gold could go straight up from here, or straight down, or sideways for months, or any combination of those three. What I do know is that Gold continues to trade within its long term up trend channel. That said, now that the mid channel line has been broken to the downside, unless your risk tolerance allows you to sit through a fall of $400 from current levels, you shouldn't be long on the basis of that channel.