Loki, often the charts tell us what's going on. Gold will likely go much higher over time but it has the potential to go much lower first. The fundamentals tell you the most likely long term direction. I look to the charts for confirmation (a long term uptrend remaining intact). I also look to the charts for short term direction. If the gold price forms a base after a correction and breaks to the upside, you can bet ther's a reason for it. You can also bet it will continue to the next resistance level. How it reacts there gives more clues. Yes occassionally something out of the blue throws it out of whack but more often than not the charts give warning. Someone always knows. When a chart looks bearish (and I don't mean a normal profit taking correction), expect some "unexpected" bad news. When a chart of say an individual stock is very bullish, perhaps there's a takeover coming or some positive earnings "surprise". In the case of SLR, its been high copper assays recently triggering big moves the day before. The gold price is breaking higher because markets expect more money printing after the Feds recent comments.
SLR Price at posting:
$3.09 Sentiment: Buy Disclosure: Held
