Seeking Alpha

Paul Mosgovoy's  Instablog

Paul Mosgovoy
Send Message
Market updates are no longer posted to this site. All updates and communication are posted on LinkedIn: Please request a link to be added to my network. Thank you, Paul Mosgovoy
My book:
Market Masters: Livermore, Wyckoff and Loeb
  • Randgold: Testing The Trading Range 0 comments
    Mar 2, 2014 8:48 AM | about stocks: GOLD

    In our previous update, we indicated that Randgold Resources Limited (NASDAQ:GOLD) was poised for a breakout.

    As of Friday's close (2/28/14), GOLD is testing the current trading range that would allow for a move higher.

    In Wyckoff's 1930 autobiography, he discusses an interview that he conducted with Jesse Livermore. In that interview, Livermore reveals that he takes a position (in a stock or commodity) when price action has reached the "danger point"1.

    As far as we can ascertain from researching market publications that date back to 1907, it was Livermore that is on record as first using the term.

    The danger point is the technical position of a stock where it can go either way, up or down.

    It is where if one is wrong on the direction, the potential loss is small.

    That is where GOLD may be at this point. The bottom of the trading range is being tested but price action has not yet moved higher or lower.

    (click to enlarge)GOLD Daily

    Charts by TeleChart

    1: Wyckoff: Wall Street Ventured & Adventures Through Forty Years, pp. 256, ISBN: 0-934380-13-9

    Disclosure: I am long GOLD.

Back To Paul Mosgovoy's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.