- Posted June 11, 2012 by
Gold Prepares for Another Drop
Last year the price of Gold made a high and has been going down ever since. Auy is a gold miner that is known for low cost mining. As a result, their profits have stayed high, even with the price of gold droping. But now even AUY may drop quite a bit. An Andrews ORE signal came in near the recent high, along with the Jaenisch golden pivot rule and what is known as a Willie nelson signal in the Advanced Andrews Course. All of this together got our attention. But it takes a lot more traders than a small group to get a stock to go down.
In this case there is a Gann head and sholders forming. Since prices have reversed using the golden pivot rule there is optimism that the Gann neckline will be triggered. If this occurs then other traders will be jumping in on the short side, with the idea that prices will go down to the $8 area.
The Andrews Traders will be looking at other factors. In any case if AUY drops here then the underlying price of gold is likely to go down with it.
Silver has given a sell signal last week to Andrews traders.