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Subject:  Re: Gold - Updated TA Date:  5/25/2012  2:25 PM
Author:  MDCigan Number:  41088 of 41566

Meaning, they will be wonderful support points?

Not will be but could be. The way I look at support points is to think of them as price levels where you watch closely what happens as they should be price points where buyers see "value". If they don't hold, that gives you a lot of info as well.

The way I see it is you watch what happens at a potential support level, and if it does NOT hold, you don't even consider for a moment getting long until you hit the next potential support level. The prices in between support levels represent a sort of vacuum where no strong buying interest exists.

At least for now, the 1525-1535 level is still in play as a potential support level but all the momentum/trend following indicators are negative. If it turns out to hold, then one by one the trend/momentum indicators will flip, first the daily MACD will go positive, and in no particular order you'll get the weekly MACD turn up, the 50 DMA will turn up, the downtrend line will be taken out to the upside.
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