Time to buy gold?

Thinking of investing in gold? It may be more prudent to wait a couple of months. Let me explain using charts.

As the wise man say: Let the chart speak to you.

Gold has been on relentless rise for the past 2 years. Everytime it pulls back to the trendline, it continues to push up. Thus it makes sense to wait for the pullback to the trendline before buying your next gold coin.

You may ask why i think it will pullback to the trendline. There are 2 main reasons. Firstly, this Dec month should close with a Doji, signifying indecision of new buyers. Secondly, based on the decreasing body of candlesticks of the last 5 months, it tells us that the momentum of buying is decreasing with each month.

Please be careful. This coming round of investment may be the last time gold is pushing up. Be ready to sell when your uncle and auntie start asking you to buy gold. Already, some of my friends around me have already bought or are thinking of buying into gold. This is an indication that the euphoria will end soon.