14 replies to this topic

[PMILLY]

Based on the price action and indicators, it looks as if many gold stocks are close to breaking out of the February slump/ consolidation. If we have a good day Monday on the stocks, we may break out of these consolidation patterns. Any thoughts or reactions on this topic are welcome. I'm leaning towards a breakout and possibly new highs in stocks I follow like NEM, ABX, BGO and especially silver stocks like CDE. Of course, I will not play this feeling until it looks like they've broken out of their consolidation. Pmilly

[The_Gold_Miner]

I'm going long Monday....

[greenie]

Long gold (GG) from thursday, although I think silvers are going to lead this time. I see Gold 500, euro/dollar=1.4-1.5. BS as usual.

[stockbucks_coffee]

xau/hui closed above their 50dma is a positive on Friday. their higher lows vs. the lower low on POG was also another positive divergence. i would say this is either a strong s/t rally. Or that the late Jan./early Feb. low was a m/t bottom and a m/t uptrend has started since. long for now and at least a strong s/t rally minimum. good luck trading folks.

[PMILLY]

Gold Miner, You said you are going long on Monday. Are you waiting for any type of pullback, which would alleviate the over bought condition on the hourly charts or are you getting in immediately? I always struggle with entry points if the market has already moved some. I would prefer to wait for a pullback, but frankly, gold stocks usually seem to take off and not pull back much once they have began their s/t moves. I appreciate the feedback from you or anyone else here. Pmilly

[stockbucks_coffee]

PMilly...i use BigCharts.com to look at technical charts each night using the Williams %R indicator for 6 month timeframe. I noticed that the xau/hui are now at or near 0 (zero) on the Williams %R which would mean s/t overbought. And based on recent past there should be at least a VERY brief or light pullback, at minimum, for any stock or indexes. So if the xau/hui is going higher then I could see at least, based on the Williams %R, a brief/light pullback first before moving higher again. good luck trading, SC.

[The_Gold_Miner]

Gold Miner,

You said you are going long on Monday. Are you waiting for any type of pullback, which would alleviate the over bought condition on the hourly charts or are you getting in immediately? I always struggle with entry points if the market has already moved some. I would prefer to wait for a pullback, but frankly, gold stocks usually seem to take off and not pull back much once they have began their s/t moves. I appreciate the feedback from you or anyone else here.

Pmilly

It depends on your trading time frame. If your only holding for a few days then every penny counts. I hold for weeks to months so a few bucks on the index is not as critical. I am hoping for a pullback from here to make the entry better.

[PMILLY]

Stockbucks and Gold Miner, Thank you both very much for your answers. I have decided to wait for a pullback and am glad to hear the confirmation from both of you that you expect or are hoping for a pullback. My game plan is to see how they act today. If they break out with confirmation on my indicators, I will wait for a brief pullback. If they pull back from their current levels, and my indicators look good, then I will probably go long. Of course, now that this is my game plan, they will probably do what I don't expect, which is drop strongly. Either way, I'm focusing on metals right now, as the stock market is doing much. Good trading! Pmilly

[skott]

so are you guys who were going to buy on a pullback buying now?

[The_Gold_Miner]

I went long at the close today.