Dominic Picarda’s Trading Pick 25th November 2013

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By Dominic Picarda.

I cast doubt last week upon the wisdom of being short the indices and long gold at this time, as many retail punters seem to be. The action since then has borne out my view, as equities are once again frothing higher, while the yellow metal is melting. I see no reason why these trends should come to an end yet. Ultimately, I reckon we will indeed see the secular bear market in stocks resume, and gold surge to new record highs. But by the time “ultimately” arrives, those who bet prematurely on the outcome will have been cleaned out. I therefore continue to advise going with the flow.

I shall be speaking about “the Ideal Portfolio” at the Lecture Club in London at 6.30pm on Thursday 28 November


At long last, gold is doing what I have been calling for. I forecast a drop to $1251 last week and that has come right. The price is currently oversold, so I’d allow for a near term snapback and then seek more downside towards $1,221.

Support: $1224.47 – Resistance: $1292.67

Support: $1211.52 – Resistance: $1276.24

Support: $1196.12 – Resistance: $1252.11

Support: $1180.75 – Resistance: $1239.11

DAY: Stay short or sell moves failing around the 21-fourhourly EMA.


Dominic Picarda CFA, CMT writes the Trader column at

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