Gold and an Entry on LGL
Sorry blog, I've been ignoring you of late. Due mainly to a lack of trading and study commitments. But here I am again anyway.
Through luck or good fortune, I took a trade on LGL last week. I'm not sure if anyone has been following on ASF, but I have been long on Gold and energy stocks for pretty much all of this year. And after the China 3 day collapse, I even decided to take up coin collecting. So have been putting quite a bit of my trading profit towards this, due to a long term punt on precious metals.
Anyway, due to many factors, most of the blue chip gold stocks began looking technically very strong. So it was back into LGL I went. It meets my criteria, environmentally aware (geothermal power) and also a good corporate citizen (helping to develop its region in PNG for the benefit of the local people). And the easiest thing to do when one of your favourite stocks looks strong, is to buy it on the breakout. Easy. And now, with the USD under pressure, energy stocks through the roof, middle east tension, and a potential inflation genie, the spot gold price looks good for at least a little while.
There are a couple of things that worry me about the chart, and gold in particular. For one, a rocket under the gold price has a tendency to bring markets down... which end up tanking the gold price and gold equities with it. The second, is the manipulation the gold price is clearly prone to. In regards to the chart, it appears there should be some resistance at these levels, and there is also a gap fill. Where to from here? Who knows? But it's good to have a proper trade on again. Will be looking for gold to get above 750US an ounce, and we'll see how it is looking once/ if there.
Through luck or good fortune, I took a trade on LGL last week. I'm not sure if anyone has been following on ASF, but I have been long on Gold and energy stocks for pretty much all of this year. And after the China 3 day collapse, I even decided to take up coin collecting. So have been putting quite a bit of my trading profit towards this, due to a long term punt on precious metals.
Anyway, due to many factors, most of the blue chip gold stocks began looking technically very strong. So it was back into LGL I went. It meets my criteria, environmentally aware (geothermal power) and also a good corporate citizen (helping to develop its region in PNG for the benefit of the local people). And the easiest thing to do when one of your favourite stocks looks strong, is to buy it on the breakout. Easy. And now, with the USD under pressure, energy stocks through the roof, middle east tension, and a potential inflation genie, the spot gold price looks good for at least a little while.
There are a couple of things that worry me about the chart, and gold in particular. For one, a rocket under the gold price has a tendency to bring markets down... which end up tanking the gold price and gold equities with it. The second, is the manipulation the gold price is clearly prone to. In regards to the chart, it appears there should be some resistance at these levels, and there is also a gap fill. Where to from here? Who knows? But it's good to have a proper trade on again. Will be looking for gold to get above 750US an ounce, and we'll see how it is looking once/ if there.
