Gold Daily Technical Outlook

Oil N' Gold Team from Oil N' Gold at 11/03/09

Comex Gold (GC)

Despite climbing to as high as 1066.9, upside in Gold is still limited below 1072 high and some more sideway consolidations could still be seen. Another fall to 1026.9 cannot be ruled out but after all, short term outlook will remain bullish as long as 38.2% retracement of 931.3 to 1072 at 1018.3 holds. Break of 1072 high will bring rally resumption to 1100 psychological level next. On the downside, however, decisive break of 1018.3 will indicate that recent rise has completed and deeper decline should be seen to 985.5 cluster support (61.8% retracement at 985.0) instead.

In the bigger picture, the long term up trend in Gold has resumed after taking out 1033.9 resistance firmly. 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