Gold levels to watch

[#1]

Gold seems set for a move to the upside - on Friday we filled a gap quite convincingly and the question is where to from here - my hourly chart is showing gold overbought so we should see a retracement to the 622.80 (23%) or 620.50 (38%) levels. These should be buying opprotunities. From there we should move to 628.80 quite quickly as there is a gap to fill and then on to next major resistance at around 641.

[Paribus]

So do you think NewGold might be worth a punt?

[CAB]

Agreed Chartist and besides which, methinks HAR is looking good on long term support and should get to R120 - R130.

[#4]

I really really dont like having to take two bets with one trade - with Newgold you are trading the ZAR and Gold ....

[#5]

By trading the Goldmine arent you taking three bets with one trade-- the goldmine, gold and ZAR?

[#6]

no - the miners do not move in step with ZAR and gold... you can trade them using the charts - you cannot do this with GLD as the price is determined purely by the moves in Gold and the ZAR - the charts do therefore not reflect the market psychology... But you are right when you trade the miners you trade the individual mines and not the gold price....

[#7]

Chartist thanks for reminding us that the chart or the "ticker" is the person you must not interogate but treat him or her as your only friend.