Wednesday, March 10, 2010

Decision Point for GOLD - Long Term Outlook

A picture says a thousand words. I have added the Force Index oscillator, which is also used to measure the trend's strength (or weakness). The Force Index set a new high, which shows that the breakout above 100 was forceful. The long term uptrend is well intact. GOLD is still well above the 9 month EMA. No real damage has been done. In addition, GOLD is fine as long as the Force Index is positive territory. That being said, even in the long term chart, GOLD currently appears to be in consolidation mode. GOLD is in a secular BULL market. Thus, any correction is a BUY OPPORTUNITY. Buy and hold is the safest strategy to follow in a secular bull market.

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