Gold Technical Analysis: 14 April 2013, Sunday, 5.55pm Singapore Time
The following is a precision follow-up of the Gold Technical Analyses made previously: http://donovan-ang.blogspot.sg/search/label/Gold.
As per warned, Gold has indeed broken down nastily. To show the extent of this damage, the move alone caused more than US$300 million damage to John Paulson in a single day.
If $1200 breaks down, it will be the final nasty shake-out (false break-down) which will attract the likes of Jim Rogers and George Soros to buy more (at the 2nd and 3rd LT Collection point) indicated in the previous Gold Technical Analyses. SUCH LEVELS SHOULD OFTEN BE BELOW PSYCHOLOGICAL LEVELS OF $1000, i.e. a triple digit in prices of Gold.
When the powerful sharks enter, any break-downs will then be reclaimed to become false break-downs for bullish move when it comes.
It is interesting to note that the mere bearish consolidation above-water the orange supports were enough to cause Geneva Gold Schemes to collapse. A move to the RED SUPPORTS as highlighted above will surely, and without doubt, trigger a sea of nasty margin calls against the late longs/buys of retailer investors and the many naive uncles and aunties out there, who surely until now had thought that Gold was a safe heaven and would continue to think so until they suffocate.
These suffocated holders would eventually be forced to dump, especially if the RED SUPPORT further allows sellers to permeate through and breaks down without mercy, and of course, this facilitates for the strong hands to do final re-accumulations cheaply when all the CORRECT cut-losses are triggered without mercy. One can definitely apply Technical Analysis correctly, but applying correctly is a way to lose big money, because big hands know that you know Technical Analysis.
These suffocated holders would eventually be forced to dump, especially if the RED SUPPORT further allows sellers to permeate through and breaks down without mercy, and of course, this facilitates for the strong hands to do final re-accumulations cheaply when all the CORRECT cut-losses are triggered without mercy. One can definitely apply Technical Analysis correctly, but applying correctly is a way to lose big money, because big hands know that you know Technical Analysis.
Donovan Norfolk Technical Rating:
Bearish
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"One can definitely apply Technical Analysis correctly, but applying correctly is a way to lose big money, because big hands know that you know Technical Analysis."
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