Gold has been on a tear since taking out the $1000 oz. resistance
level. Given the much increased volatility of the gold price since
2005, you have to be ready to encounter the occasional dramatic
overbought / oversold condition in the market, and you need to
allow some broad parameters to be breached before the odds favor
a trade in or out.
At present, gold could probably move to $1140 - 1150 oz. before it
becomes extremely overbought in the shorter run. But, the recent
spike up in price has moved the metal into overbought territory
nonetheless, so if you play this market extra attention may be
required over the next week or two.
Chart for Gold Trust shares.
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