Paul Mosgovoy's  Instablog

Paul Mosgovoy
Send Message
Truth is timeless: “Markets never change” – Jesse Livermore, 1923 The early masters, Livermore, Wyckoff and Loeb isolated themselves from the crowd and crowd thinking. None of them ever graduated high-school and yet they each became legends in the market. Their techniques have been time-tested.... More
  • Market Update: Something Amiss In The Gold Sector 0 comments
    Mar 27, 2014 7:25 AM | about stocks: GOLD

    A report with comments on the precious metals markets from the front page of the Casey Research website may be spot-on as the Brits would say.

    In that report, there was mention of the possibility of one more wash-out type low in the sector..... yet to come.

    If we look at the chart of Randgold Resources Ltd. (NASDAQ:GOLD) as a proxy we see a potentially disturbing picture.

    (click to enlarge)GOLD Daily

    Chart by TeleChart

    The trend-line shown only had two contact points and so was not thought to be sufficiently verified (on the break) to result in an exit of our entire position.

    A down-sloping trend is shown and the cross of the two lines may represent an insurmountable resistance.

    Price action in GOLD has currently set up a divergence as seen on the hourly charts and there may be a bounce up to the apex shown in the chart.

    If there is a rally to test the trend break, it may give off clues that we are in for another down-swing if the rally stops at the location shown.

    The other miners have fallen more sharply than expected as well. Looks like something is not right........

    Disclosure: I am long GOLD.

    Stocks: 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

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.