twalker .. I have been adding to my longs recently. I like this trade at these levels. It really is a play for a weaker USD. I think the recent correction to the USD is over, so all the precious metals and base metals should benefit over the next few weeks.
Peter
Peter
TheBramble
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Don't know about 'load up' TW.
If you're looking at a weekly chart I guess you're looking for a longer-term investment rather than short-term speculation.
Iraq, US budget deficit - vast and growing, dollar in long-term decline, interest rates low and inflation on the way up. All good long-term signs for Gold.
However, benefiting equally from all these factors is Silver. On top of that, there are a significant number of reasons why Silver could be poised for even better long-term performance.
Last year was the 15th in a row where demand outstripped new supply (which means inventories are being depleted). Low prices have discouraged new exploration and production. Much of the current shortfall in the current Silver market is met by China who have a lot of the stuff left over from when they operated a Silver standard. They sold 56 million ounces last year alone. On current figures, China has only 2-3 years at that rate left. We probably wont have to wait until 2006/7 to see that factored into Silver's price.
If you're looking at a weekly chart I guess you're looking for a longer-term investment rather than short-term speculation.
Iraq, US budget deficit - vast and growing, dollar in long-term decline, interest rates low and inflation on the way up. All good long-term signs for Gold.
However, benefiting equally from all these factors is Silver. On top of that, there are a significant number of reasons why Silver could be poised for even better long-term performance.
Last year was the 15th in a row where demand outstripped new supply (which means inventories are being depleted). Low prices have discouraged new exploration and production. Much of the current shortfall in the current Silver market is met by China who have a lot of the stuff left over from when they operated a Silver standard. They sold 56 million ounces last year alone. On current figures, China has only 2-3 years at that rate left. We probably wont have to wait until 2006/7 to see that factored into Silver's price.
twalker said:
I am bullish too! Fundamenatlly (long term) fort all reasins The Bramble mentions but also short term I think gold will retrace its recent decline from the double top in $430's.
The medium term concerns me! It would surprise me, based on charts, if gold will make new highs anytime soon. In stead I expect new lows before the next mahjor bull rally will take gold up to new highs.
I am long, targetting $400-410, stop at $375 (will probably raise stop later today!)
Attachments
Buy Gold by gum!?
naaaa.
Based on the chart alone, Id be looking to go short. Why? Well, word on the street says that as 'posh' (common strumpet) spice's career hits a new all time low, she plans on selling all her bling-bling. This means that there will be a glut of poor-taste designer gold trinkets hitting a market near you. Watch out.
naaaa.
Based on the chart alone, Id be looking to go short. Why? Well, word on the street says that as 'posh' (common strumpet) spice's career hits a new all time low, she plans on selling all her bling-bling. This means that there will be a glut of poor-taste designer gold trinkets hitting a market near you. Watch out.
frugi
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Bracke,
Open Interest is the total number of outstanding contracts that are held by market participants at the end of each day. One generally wants to see rising OI to confirm/validate a trend.
http://futures.tradingcharts.com/learning/volume_open_interest.html
Open Interest is the total number of outstanding contracts that are held by market participants at the end of each day. One generally wants to see rising OI to confirm/validate a trend.
http://futures.tradingcharts.com/learning/volume_open_interest.html
frugi
Thank you for your reply and the link.
The link showed a table part of which appears illogical, perhaps you can clarify.
price: falling volume: falling open interest: falling interpretation: market strengthening
How can the above scenario be interpreted as market strengthening, surely it is weakening.
Regards
bracke
Thank you for your reply and the link.
The link showed a table part of which appears illogical, perhaps you can clarify.
price: falling volume: falling open interest: falling interpretation: market strengthening
How can the above scenario be interpreted as market strengthening, surely it is weakening.
Regards
bracke
TWI
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Quite simple,
Increasing OI and Volume suggest market is behind it as new positions being initiated.
If Volume increases but OI decreases assume positions being closed so move less likely to continue.
That is rationale anyway, not sure how it works in practise as personally have not paid much attention to it.
For Gold should think there has been recent volume increase and OI decrease due to all the longs getting out during the decline. I suspect the last few days has seen new longs become established however.
Increasing OI and Volume suggest market is behind it as new positions being initiated.
If Volume increases but OI decreases assume positions being closed so move less likely to continue.
That is rationale anyway, not sure how it works in practise as personally have not paid much attention to it.
For Gold should think there has been recent volume increase and OI decrease due to all the longs getting out during the decline. I suspect the last few days has seen new longs become established however.
TheBramble
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So you're saying decreasing volume, price and OI indicate a weakening market with potential to move to the upside at some point?
