Gold Daily Technical Outlook

Oil N' Gold Team from Oil N' Gold at 01/21/10

Comex Gold (GC)

Gold's break of 1119.2 minor support indicates that choppy recovery from 1075.2 has completed at 1163 already and whole correction from 1227.5 is possibly resuming. Intraday bias is now on the downside for 1075.2 support first. On the upside, in case of recovery, break of 1144.8 minor resistance is needed to indicate that fall from 1163 has completed. Otherwise, outlook will remain cautiously bearish.

In the bigger picture, rise from 681 is expected to develop into a set of five wave sequence with first wave completed at 1007.7, second wave triangle consolidation completed at 931.3. Rise from 931.3 is treated as the third wave and has completed at 1227.5 after missing 100% projection of 681 to 1007.7 from 931.3 at 1258. Correction from 1227.5 is still in progress and is in favor to extend further towards 100% projection of 1227.2 to 1075.2 from 1163 at 1010.7, which is close to 1000 psychological level. However downside will likely be contained there and bring strong rebound. On the upside, a break of 1163 resistance is needed to indicate that fall fro 1227.5 has completed. Otherwise, more downside should be in favor.

Comex Gold Continuous Contract 4 Hours Chart