In her Edwards Charts, technical expert Yola Edwards reviews the outlook for gold, as well as her latest new buy recommendation, Barrick Gold (NYSE: ABX).
"Gold rallied faster than anticipated reaching my suggested lower target price of US$978.50 on February 29. The daily candlestick ended in a doji star and it could be setting up an evening star pattern suggesting lower prices ahead if gold cannot close above US$978.50. H
"However, there is a good possibility that the level will be exceeded as both the daily and weekly MACD are on buy signals. Additionally we have two long white advancing candles and a third if formed the first week of March would form a three advancing white soldiers pattern signifying strength ahead and i would then look for a rally to about US $1032.50.
"On the negative side though you find the RSI at overbought levels and the possibility of an evening star pattern thus I would expect a pullback to about US$950 first before higher numbers. In any event it would offer another buying opportunity.
"Meanwhile, Barrick Gold appears to have traced out a pennant pattern over the past three months and may be close to breaking out of the formation to the upside.
"Over the past two months the stock's consolidation has depressed the MACD to extremely oversold levels suggesting that a buy signal given from this level may see the stock soar to the upside very quickly. The pattern's technical measurement suggests a target of $67.64 over the next two months. Buy."
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.
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Reader Comments (Page 1 of 1)
3-07-2008 @ 6:12PM
Kent said...
I recall gold prices skyrocketing to $1200/oz. in the mid - 70's. I sold my gold cigarette case for $1800 then when I stopped smoking. I recall the economy under President Carter was suffering from high interest rates, rising oil prices, and the weakening Dollar. Almost identical to what's occuring now. As long as the world loses confidence in the Dollar, gold prices will rise.
3-10-2008 @ 4:35PM
gumby said...
Stop contributing toyour 401K plans now.... Save for your house mortgage.... Your home is more improtant than 401K plans, right?? Protect your home now.. Remember you cant touch 401K money until you are at ripe ol' age of 59 and half...... Your home will be lost before then, right/?? First things first,, right?? Screw stock market for now and buy at cheaper prices much later.....