Amen (from the dog pound)! I am in the same situation (except xau/usd). The big test will be at 1140 - does it break through or get rejected at that level (assuming it gets there).
Nathan
This might start an interesting discussion, but I am going to give my opinion on Gold and Silver. I am studying the fundamentals of the two. They are starting to fascinate me. Gold and silver for the most part has been a crappy investment over the past one hundred years. I sincerely believe that we are as traders about to witness and hopefully take part in a huge bull run for gold and silver. The charts will tell the story over time and I will trade them as I read them but the fundamentals are present for gold and silver to move like we saw back in the late 70's early 80's. As far as I can determine, inflation is the single most important factor to consider when trying to discern the direction of price of gold and silver. Inflation is simply the creation of more money. Our government creates money by backing it with a promise to pay later. We are printing money at unprecidented levels in an effort to combat the rising unemployment rate. We are at a 26 yr high in the unemployment rate and most competent market analysts, objective economists and honest politicians concur that this totally unacceptable. From a federal politician's point of view, this high unemployment rate is the most viable threat to his/her position in office. The answer to getting the economy growing again is JOBS. Back in the late 70's early 80's a period of prolonged high inflation was engineered to confront the economic crisis. This strategy's goals were to promote consumption, reduce the nation’s burgeoning debt and additionally to address unemployment. I believe that inflation is again being implemented today even though we are fed news to the contrary by our govt, our financial advisors and the media. Our leaders are afraid to give usthe straight and skinny. Anyone who raises taxes will be voted out of office and anyone who promotes inflation will experience the same fate. Just speculating here! That IS what I d now isn't it? Here is my take on the charts fr the shorter term. We are currently on the short side of last weeks range and on the long side of last month's range. I have an entry indicated on the 15min chart. I am watching with interest the lower upward sloping trendline on the daily chart. I don't think that we will get there before we get to 1144.75. I use the 100sma and the 50sma as confluence and S/R levels and we are above both again on the daily TF.
K.I.S.S.
