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A CHARTISTS PRICE GUIDE FOR NON-CHARTISTS.
fingers xxd - Tue, 27 Dec 05 :
     
DGO - 189.00p .. the 10 yr 'all-data' chart below, shows the incredible uptrend of the last 3 yrs, and just to repeat a couple of points that I have just mentioned in the previous posts .. I am a strong believer in the phrase 'let the trend be your friend' .. and with the price of DGO reaching new 'all-time' highs, there are no 'historical resistance levels' to worry about .. just the 'psychological levels' .. 200.00p is such a level .. and it has been preventing the 'uptrend' from continuing for the last 3 mths.
Although there is a very good chance of the 200.00p level being broken, and the strong uptrend continuing .. I would never anticipate a breakout, no matter how strong it looks.
I would not be happy buying at its present level of 189.00p, cos a failed breakout could easily see the price retracing quite quickly again to the 150.00p level .. however, I would be quite happy to buy above 200.00p, once the breakout and the support of the 200.00p level has been confirmed ..the upside potential would be greater, and the downside risk would be less.
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