The case for Gold

Gold has had a nice run to about $730 and then has pulled back in an downtrend since about mid May. Having missed the move up, I've been looking for a pullback to get long. When trying to buy a pullback, there is always the chance of trying to catch a falling knife, and getting cut. On June 13 the futures fell hard. I heard stories of panic on the trading floor. The next day as the price bounced off the Fibonacci .618 retracement, I went long. One confirmation I used was a CCI (Commodity Channel Index) breakout (see the bottom of the chart). The CCI line broke above the downtrend line. Using the CCI as confirmation is a new tool I learned about from a book about Forex trading called Forex Trading for Maximum Profit by Ragee Horner. I also started using the Wave indicator Ragee uses (notice the three pink moving averages). I added these chart indicators to others I watch and use. I'll get into more of those at another time. As I watch Spot Gold on the Sunday Afternoon international market it is down almost $4. I've often noticed they run it down to shake um out before they run it up. Time will tell.