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Subject:  Re: Gold - Updated TA Date:  10/26/2012  10:12 PM
Author:  MDCigan Number:  41173 of 41568

Conclusion: While gold feels as if it is falling apart at the moment, the breakout looks convincing, and there is still good reason to expect that the decline will be halted by the support lines.

One thing I'll add is I think it is futile to try and time entries and exits around specific fundamental data points. There really seems to be no rhyme or reason. If you look at this entire secular bull starting at 250 in 2001 and look at the various major uplegs versus the lengthy consolidations, there is really no way to say why when one occured versus another. So I think it makes more sense to understand the long-term secular fundamentals are still positive and use the technical and chart indictors to trigger entries and exits.

The lowest risk entry now for a really long-term position is wait for the pullback to the 200 DMA/10 month moving average. That way if it doesn't hold, you exit for a small loss rather then a bigger loss if you jump the gun and enter too early.
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