A classic false breakout in gold

Gold has reached a crossroads, says John C Burford. The market reckons the price will keep rising and that dips should be bought. But is this view too complacent – and is it time to sell?

In my last email, I analysed the chart of gold and said it was at a crossroads. The events of the past 48 hours have proved how right I was! Having chosen one path, it promptly turned tail and ran the other way!

What seemed like a normal resumption of the uptrend has, in the space of a few hours, now turned 180 degrees. Now it appears we are heading down!

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.