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Gold Set to Climb, According to Profit Confidential Expert

224 views  2012-10-08 03:41
“The break of the downtrend in late July was critical,” says Cekerevac. “This trendline was then successfully tested in early August and turned up in a bullish manner.”

Cekerevac also reports that since the break from the downtrend in late July, any pullback in gold was used as a buying opportunity.

In the article, “Where Does Gold Trade Next?,” Cekerevac elucidates his thesis from a technical analysis basis, explaining that he turned quite bullish in late July, as he saw larger volumes on up days, as well as higher highs and lows. The next test was the 200-day moving average (MA), he says, which was also successfully breached and subsequently held.

Cekerevac cautions, however, that because of the fast price appreciation, the market view on gold might be slightly overextended over the short term.

“On a long-term weekly chart, following the highs in 2011, gold has seen a neutral to downward market,” says Cekerevac. “However, this sentiment has just shifted, as gold broke through its resistance line.”

Cekerevac believes that this now opens up the possibility of a retest of the high just above $1,900 per ounce. He also highlights that on the long-term chart, there is not an overbought condition evident in the Relative Strength Index (RSI).

“This means that, while a pullback in gold over the short term might be possible, over the long term, it is not yet a worry that this move will be overextended,” concludes Cekerevac.

Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.

Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.

To see the full article and to learn more about Profit Confidential, visit www.profitconfidential.com.

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