Wednesday, January 4, 2012

Citi Says Gold correction has run its course...

Whenever banks/investment banks start handing out free advice like, "The gold correction is over", I always assume they are doing the opposite, like selling gold. Since when do these banks spend hundreds of millions of dollars on research to give it away freely?

While I'm open to any changes and will revise my outlook based on those changes, I just don't see it yet.

Here's GLD's reaction to the Citi analysis just released.
 Another sell the news initially...

 Longer term, I have been split as to whether gold may be in  bubble or is at an intermediate top, in any case, the top formation suggests a pattern implied target of about $134.00

 GLD 1 min

 GLD 2 min

 GLD 5 min

GLD 15 min.

To say the least, I would wait for a pullback to look and see if gold is being accumulated, otherwise I wouldn't take any action based on the Citi note.

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