Thursday, March 22, 2007

Cocked & Loaded

Our Rat Trap is now cocked and loaded. Dem Rat Bastids is sneaky SOBs though. The Doji we got for today's candle on the Gold Chart may be reason to show a little respect for our enemy and perhaps give pause before we get "...go for throttle up."

Doji ? From Doji form when a security's open and close are virtually equal. The length of the upper and lower shadows can vary and the resulting candlestick looks like a cross, inverted cross or plus sign. Alone, doji are neutral patterns. Any bullish or bearish bias is based on preceding price action and future confirmation. Doji convey a sense of indecision or tug-of-war between buyers and sellers. Prices move above and below the opening level during the session, but close at or near the opening level. The result is a standoff. Neither bulls nor bears were able to gain control and a turning point could be developing.

Dem Rat Bastids have stolen the bait before... I don't think they get to steal it again this time, but they certainly appear to be thinking about it. The doji we got today is at the top of the new uptrend channel, and gold has been up six days running. That and it is Friday. The Vermin always try and steal the bait on a Friday after the market in London closes at 11AM est for the weekend. A quick retest of 655.50 would be welcome and healthy and only wind the spring on this trap tighter. On the flip side, should gold move through today's high at 666 and close higher Friday, a steeper trend line that launches gold to 680 by the quarter's end may be established, and that ton 'o gold bricks may be closer to squashing our quary. A higher close Friday might also push the 9 day MA above the 50 day MA. As you can see by the vertical green line and black circle on the chart...a 9/50 crossover has the potential to be the straw that breaks dem Rat Bastids back.

Please click on chart to enlarge.

Silver Resistance: 13.54 / 13.67 / 13.80

Silver Support: 13.32 / 13.25 / 13.10


Gold Resistance: 668.50 / 670.30 / 672.50

Gold Support: 662.10 / 658.20 / 655.50

Words of Wisdom:

While inflation erodes savings and wealth, gold has historically preserved wealth.

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