(The following is a Special Report from FindLeadingStocks.com)
Gold is In A Bear Market:
Gold is down over $30 today and everyone is asking why? The simple answer is because gold is in a bear market. Since last June (past 10 months) gold has been trying to bottom. It is forming a very large double bottom pattern and has been bouncing between support (1179) and resistance (1434 or the middle of the double).
Next Move Wins:
One of my trading rules is the next move wins. This simply means that when markets are moving sideways the best move is often to wait for a breakout (above resistance) or breakdown (below support) to occur before entering a new position. Livermore’s version of this rule was to wait for the path of least resistance to develop. This requires tremendous patience on the part of the investor but their patience is well rewarded if they are able to catch a new trend- early. Right now gold is in this category. By definition one should expect this sideways action to continue until either support or resistance is breached. Trade accordingly