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Gold and Its Corrective Moves
Pinnacle Digest writes: This week we turn to long time gold analyst and precious metal expert Warren Bevan to get his take on where gold stands from a technical view. Gold’s technical moves are not always the easiest to understand or embrace, but if timing this gold bull is on your agenda, listen up. Bevan explains that gold held its 50 day moving average Friday and that is likely the low for the time being. He is cautious, however, and thinks we will probably see a consolidation at these levels for a few days to a week and then we are likely to head lower again.
Bevan is waiting to see how the action plays out at this price level before confidently predicting whether gold will continue down further. He does suspect gold will move down to test at least $1,700 and more likely the 200 and 100 day moving averages around $1,660.
As we at Pinnacle have noted, nothing goes straight up and this consolidation period is healthy for gold and confirms we are still in an up channel. Bevan believes it may take two or three weeks to test those averages, but he does suspect it is coming.
He reminds investors not be scared or upset at corrections, but to embrace them as they are a sign of a healthy market. This is obviously easier said than done, but critical to acting in a timely and profitable fashion.
As a final reminder, Bevan states that,
"I’ve said many times in the past that once gold is rising nearly everyday for a period of time, then I’ll be really getting worried and likely begin to take profits."
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