Friday, October 8, 2010

Key Reversal in Gold, Silver

Both precious metals, Gold and Silver have seen a key reversal day on Thursday, Oct 7. Prices opened with an upside gap, moved further up, then suddenly began to fall, filled the gap closing near the lower end of the range.

A key Reversal day has limited long term significance. It does denote an excess of supply. Often it will become an intermediate top, but equally often, the reversal day is just a short term correction. When traders sense that a reversal day is developing, they should exit. It is no fun watching your gains go away as the market dips.

Every trading strategy should have a reentry mechanism. For Silver, I will wait for a dip to 33000 support. No hurry.

2 comments:

Nifty direct said...

This is very good update about the gold and silver. It is the very useful information for everyone who do trade. I appreciate the blog and got the some good clue from the blog. Thanks for sharing the blog
intraday tips

kk said...

RESPECTED SIR
!!INTERESTING TIMES!!
MOSTLY I USE THE QUALITATIVE SENTIMENT OF THE PRICE MOVEMENTS HAPPENING IN THE NIFTY TO DECIDE MY TRADING DECISIONS.

ONE MONTH BACK , WHAT WE SAW WAS THAT NIFTY WAS DOING WHAT IT WHAT IT WANTED TO DO i.e. outperforming everybody.
SOME 10 DAYS BACK, IT STARTED TAKING CUES FROM SOME GLOBAL DEVELOPMENT. AND NOW IN THE LAST 3 DAYS IT HAS UNDERPERFORMED EVERYBODY.
SIGNAL IS VERY CLEAR , WE ARE GOING TO TOP OUT OR HAVE TOPPED OUT. FOR ME, WE ARE STILL 3,4 DAYS AWAY FROM A MEANINGFUL CORRECTION , BECAUSE

1)- DOW IS LOOKING GOOD, IT'S STILL 250-300 PTS AWAY FROM IT'S RESISTANCE ZONE.
2)- WE HAVE NOT SEEN MADNESS IN CATS AND DOGS.
I THINK REALTY STOCKS COULD SURPRISE US.