Index: $US Gold Price
Short Term Trend
Last indicator = BUY @ $254 on 3/9/1999.
Trend still - UP Since signal date by 20%.
Guides:
Black = Index showing BUY/SELL Arrows
Red
= 100 Day Moving Average
Blue
= 200 Day Moving Average
Magenta = Trend Channel
Observations
1. The buy indicator of 3/9/1999 is still in place.
2. In the short term the price has moved too far, too quickly.
3. A consolidation to retest the downtrend channel should be expected.
Long Term Trend
Observations
1. The index bounced off the downtrend channel line at $254, trying to hold the horizontal support at $278.
2. The longer term moving average has been penetrated on the upside, a promising move after the difficult period since 1996.
Conclusion
1. The Buy signal of 3/9/1999 is still in place, although we observe that the index price is overbought in the short term.
2. For existing and/or new investors it may prove opportune to await a pull back to the $280 - $300 range before accumulating.
