Ok ... I'll admit it... I have yellow fever...Gold that is.
I have played this sucker so often but only recently have I made money on it... I think playing it for a shorter term in the key.
First of all Gold is on a bit of a surge as can be seen in the following chart
It is about time in my opinion for a turn around in this metal... It did not reach recent lows and has shot back. This Hourly chart shows the turn around... I can see it falling back when it hits $1200/oz but I believe it will be at least testing that area.
Here is the
Point and Figure on Gold
EOD prices
Here you can see the
resistance barrier I see before it's rise from $1190 - $1205... if this were a stock I would say the effort was not worth it... However we are not investing in the commodity... we will be investing in a volatile stock that performs well to a rising gold price.... Our friend LakeShore Gold [TSX:LSG]
Well here is the P&F on LSG. This is not a perfect Resistance/Support
range.... there are minor resistances before that line but I think they will easily fall if Gold rushes to $1200... so if we grab $0.07 on a swing trade in the next week or so.... that is a 7% gain.... if gold carries on past $1200 we will see more gains
The Slow Sto and MACD look fine... the BBwidth has not turned down yet... it is thinking about it. If it turns down that is ok...we would be in consolidation and the Slo Sto and MACD look fine.... Similarly if the BBwidth rises... with the slopes of the other 2 indicators rising that would be a
breakout.... also good
The only problem would be a downturn in the Slow Sto and MACD... then we are out of the pool.... you see us stumbling between the 50 and 200
SMA.... that is good IMHO it will hold the price til I finish this post
the Force (100) is rising as is the RSI... the DI +/- looks promising too.
Conclusion
Here is the current L2 chart
I believe the price will fall as the MACD is showing a fall.
I am going to purchase 10000 shares of LSG.TO at $1.04/share in a
limit order
EDIT...10 mins or so later
As you can see the share price fell to $1.04 a couple of times in the last 10 mins ( this is on 3 min avgs...)
So the order is assumed to be completed.