Gold Update 05/01/2009

This is another Gold update 05/01/2009 and is a continuation of a series of articles on stock trading using DZZ which I have been writing about for several months.

Once Gold hit the all powerful $1000 psychological price level for the third time since the beginning of 2008, I have been writing about a possible pullback to to the $600-$700 price range.

Each pullback from the $1000 price level has been to lower lows and in my view this time quite possibly will be no different. Although after each article I have posted so far, most people I know have said that they feel Gold will be going up each time, not down. Sometimes it pays to think a little contrarian.

The first pullback brought the price of gold near $850 in April 2008. The second pullback brought the price near $730 in October 2008 and I feel the current pullback may bring the price to the $600-$700 price range. Any move higher through the $918-$920 price range on a closing price would be a concern and should be used as a possible stop loss guide for anyone using DZZ to profit from any downtrends. This level in Gold would be close to the recent 10 day low of $22.80 shown on the chart of DZZ below.

Here are links to other pages I have posted on Gold:

• Gold Update 05/05/2009
• Gold Update 03/23/2009
• The case for Shorting Gold Using DZZ, February 25, 2009
• Gold and Recessions, Including free report
• Best Investment During Recession

Here are updated charts since previous posts with some levels to watch:

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