Hi Saci
Had another closer look on the daily- I drew in the trendline from where the price drop started-
which technically I believe that is where it needs to start- (gold is really interesting to follow the whole
market was watching if it would break the trendline that started back in 2011 interesting stuff)
It did not break when everyone expected - needless to say- but it is slowly climbing now which is probably better- you should watch- I find it gives me a live challenge- of looking at the macro what I think will happen and watching the progress. http://www.livecharts.co.uk/MarketCharts/gold.php- is not bad gives a live window that can be adjusted to any timeframe.
It is debatable where the line should actually begin on SGH- however it does not really make a huge difference - to where we are at right now-So it can be placed higher up but to me gives the same overall.
Your correct in thinking it is making higher lows at this point - - however also making lower highs-
The thing that bothers me a lot with charting this now is that all the trading action is fairly controlled imo.
And can remain range bound now for a very long time with the uncertainty...Can also fall off a cliff with out warning.
I had a look at the short graph and my they have indeed dropped- but the price has not risen- this would indicate to me that they are closing - rather than covering?
I don't short however logic would tell you that if the SP has not risen with the amount of shorts dropping so I assume that as usual they know more and are possibly walking away?- which brings me to my final problem- we have indeed reached a decision point here.
That is the scary part of someone screeching short rally when there is a big drop in shorts and NO rally--ummm
Now at any of these chart decision points unless the FA is in the bag bullish I would not be holding- Looking at the likelyhood of finding a catalyst that can propell this to BO- well there is not any- more still on the negative - looming DFE- more lawsuits big payments coming up- long time before there is any positive news re positive income- It could break down completely soon - that is the concern.
At best sideways... imo
Best of luck not an easy situation.
SGH Price at posting:
9.4¢ Sentiment: None Disclosure: Not Held
)
