Third Time is the Charm
posted Mar 8, 2005 at 11:31PM
A Slightly Bigger Picture
The move across the 200dma is a bullish technical development and I would think a good place to start adding to trading postions or dipping your toes in.
Remember that main trend-line resistance is the real big-picture resistance so one doesn't need to chase anything. If that trend-line gets broken then almost everything is going to go up.
For those on short term trading mode I would look at the 50 dma as at least a mental stop. This ratio shouldn't close below that level for awhile.
Those who would want a bit more play should look at the main support trend-line (or slightly below to allow for throw-over)
I myself find the technical picture very constructive, but there are some pretty good names like saville and capt hook pluse some board traders with excellent records who argue that we are looking at blow-off moves in commodities and USD (to downside)so keep it in back of your mind.
The short-term trend remains up for gold. Asian indexes and housing index still look OK so the reflation game is still on.