Srie Hartati

A great way to make yourself popular is to tell people what they want to hear, and the trick is to make yourself scarce before the wheel comes off, or at least slip quickly into the background when it does. Thus you'll find no shortage of articles out there telling you what a great investment gold is and the countless reasons for buying it. They are "playing to the gallery" which is normal near a market peak. However, most of the evidence that we are examining points to an imminent reversal and retreat - not a bearmarket though as the bullmarket in gold is thought to have much further to run and will probably end in a spectacular parabolic blow off with prices at dizzying heights compared to today, but this is still a long way ahead of us - over a shorter time horizon we may first have to deal with a significant correction.
Let's start by putting things in context by looking at gold's long-term chart from the start of its bullmarket way back in 2001. Gold still looks robust on this chart and there is in fact no sign at all of an end to its bullmarket. However, we can also observe how it is once more approaching the top return line of a large uptrend channel. This is what stopped it in its tracks back last December and from other evidence looks like it is about to do so again. This is a most useful chart as it makes clear that gold could react back to the $900 area, or even the $800 area, with its long-term bullmarket remaining intact. Thus, if gold does react back heavily soon, we should not be thrown by it, but instead look to build positions increasingly the further it reacts back.
(ibtimes)