Sunday, February 22, 2009

Dow Jones - Oh No - the Bear is winning


After few months never write about stock market, now we have clear direction that down trend already form. From daily chart or weekly chart, we can see the same story not changed, each attempted rally has ended once the price approached the resistant. The bull consistently failed to send the price above the nearby trend line, which suggests that this will continue to be stronger level of resistance than many traders are hoping for.

Back to the figure, Dow Jones closed last week at 7365, almost near all time low of recent year. Similar to past economy down tread few years ago, Gold also become popular this time, in fact, it's one of the investment that can be long for now. As of Feb 23, 2009, Gold price closed at USD994, almost all time high in the year. Since last few years, Gold not only for decoration and saving anymore, but has became one of the popular investment tools.

If the situation not improving, we can expect Gold price continue the up tread due to most Government continue to print money to support their economy. More private company or even some Government body will think of using Gold as trading tools if currency continues to go south. It’s not surprise if Gold price increase 100% in next one or two years time.

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