Friday, March 6, 2009

Gold update

It's amazing how much angst a meager 10% correction in gold can instill in investors. Be honest how many of you freaked out during gold's pullback?

Keeping in mind that nothing is certain in the investing business let's take a look and see where we stand.

So far gold hasn't even broken the intermediate trend line. So we don't even have a possible 1-2-3 reversal yet.

Gold tested the consolidation zone of the T1 pattern in play and now looks to be breaking back out to the upside.

Finally, looking at the bigger picture we see gold pulled back far enough to test the breakout line and has bounced strongly off that level.

At this point I don't see anything to get negative about yet. Unless something changes I have to assume the secular bull is still intact. Heck, as far as I can tell right now the intermediate trend is still intact.

I suspect the bull managed to shake off quite a few investors without really doing any damage to the long or intermediate term trend. You have to hold on tight if you want to ride this bull all the way to the finish line.