Gold Daily Technical Outlook

Oil N' Gold Team from Oil N' Gold at 10/23/09

Comex Gold (GC)

Intraday bias in Gold remains neutral for the moment as triangle consolidation from 1072 continues. Another fall cannot be ruled out but after all, we'd expect downside to be contained above 38.2% retracement of 931.3 to 1072 at 1018.3 and bring rally resumption. Above 1072 will indicate that recent rally has resumed and should target 1100 psychological resistance next.

In the bigger picture, the strong break of 1033.9 high confirms that long term up trend in Gold has resumed. Rise from 681 would likely develop into another 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 expected to extend to 61.8% projection of 681 to 1007.7 from 931.3 at 1133.2 first and then 100% projection at 1258 next. On the downside, though, break of 985.5 support will dampen this bullish view and will turn focus back to 931.3 support instead.

Comex Gold Continuous Contract 4 Hours and Daily Charts