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Don’t Get Bitten by These 2 Gold Stocks
Goldbugs perked-up this week, pushing the yellow metal higher in response to fears around the Cyprus banking crisis and its potential to start another contagion.
With the help of headline news, spot gold prices have risen to $1,614 — their highest in March. The rally should be kept in perspective, though, as gold prices are in a short-, intermediate- and long-term bearish technical trend, making the rally unlikely to continue.
The overwhelming bearish trend has a lot to do with gold continuing to unwind from an extremely overloved situation last year, when everyone was scrambling to own the commodity. Now that the overall buying frenzy has come to a close, the decaying technicals for gold prices provide a constant drip of selling pressure.
Looking at a weekly chart, pressure from the overhead declining 50-day (10-week in the chart below) should squash the recent rally, triggering another round of selling in the gold market. The good news for the gold bulls is that there should be some support at $1,550 again … though not for long.
Read More: http://www.stockgoldmarket.com/dont-get-bitten-by-these-2-gold-stocks
