Tags: Parets | gold | false | move

Technician J.C. Parets: Gold’s Recent Drop a ‘False Move’

Thursday, 05 Jan 2012 08:06 AM

By Dan Weil

Gold’s plunge to a five-month low last week represents a false breakdown that already has begun to reverse and will continue to do so, says J.C. Parets, a market technician and founder of AllStarCharts.com.

Gold hit $1,523.90 an ounce Dec. 29, the lowest level since July 7. With low volume last week, once the precious metal started moving down, it triggered stop-loss orders, especially from retail investors with exchange-traded-funds, Parets tells Yahoo.

“Slowly but surely, while no one was looking, gold has started creeping up,” he says. “We’re back like the breakdown never occurred.”

URGENT: ‘Wealth Gap’ Widens to 1929 Crash Level. See the Shocking Footage. See the Evidence.


Gold recently traded at $1,612, up 6 percent from its Dec. 29 low.

"False moves create fast moves in the opposite direction,” Parets says. “In this case it’s in the direction of the underlying long-term trend." He was referring to the precious metal’s 11-year rally.

(Associated Press photo)
There’s still time for investors to jump on this week’s rebound, Parets says. “If you’re looking to trade, not as a long-term investor, and you see these false breakdowns, that’s a great entry point.”

Minimize your risk with stop-loss orders and take profits quickly, he recommends.

Other experts are bullish on gold too. "What I am looking for is a gold price of $1,800 an ounce in 2012," Jeffrey Wright, senior research analyst at Global Hunter Securities, tells TheStreet.com.

And gridlock in Washington over the budget could push the precious metal as high as $2,000, he says.

© 2015 Moneynews. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
You May Also Like

KFC Double Down Dog Subs Fried Chicken for Hotdog Bun

Wednesday, 28 Jan 2015 11:30 AM

KFC has introduced a new Double Down Dog in the Philippines which replaces the traditional bread hot dog bun with one ma . . .

FTC: Internet of Things, Smart Devices Put Consumer Security at Risk

Wednesday, 28 Jan 2015 10:47 AM

The FTC has warned that the so-called Internet of Things , web-connected devices like thermostats, garage door openers,  . . .

Jordan, ISIS Swap of Woman Bomber for Captured Pilot OK'd

Wednesday, 28 Jan 2015 10:50 AM

An Iraqi woman prisoner involved in deadly 2005 hotel bombings in Jordan will be swapped for a Jordanian pilot captured  . . .

Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved