Puregold Price Club’s (stock symbol: PGOLD) has taken a rest today after falling for three straight days through the 40 level.
A few months ago, Puregold printed a different picture when it was bound for 50. I’ve mentioned on May 13 that I want to see whether or not 46 will hold as support. Well, it took just 3 days for the market to answer my question! Price sliced through 46 easily on May 16. Not only that, it turned into resistance on July 7 and price never looked back. Somehow, holders of Puregold have become jittery after the 40 level broke.
The recent moves did a severe technical damage on PGOLD’s chart. Today’s price action may be a temporary pause or a start of a (short-term?) reversal. Bears would do more damage if they can break 30.
The Money Flow Index (MFI) has continued to sag and is now close to the zero level.
Those who hold PGOLD should monitor its price action very closely. Be careful.