Gold Daily Technical Outlook

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

Comex Gold (GC)

Gold's rally extends further and made another record high of 1109.9. At this point, short term outlook will remain bullish as long as 1084 support holds. Further rise should be seen to next fibonacci target of 61.8% projection of 681 to 1007.7 from 931.3 at 1133.2. On the downside, though, below 1084 indicate that a short term top is possibly in place and bring pull back to 4 hours 55 EMA (now at 1075.9) or below.

In the bigger picture, the long term up trend in Gold is still in progress. 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, break of 1026.9 support will suggest that a short term top is formed and bring consolidation. But we'll hold on to the bullish view as long as 931.3 key support holds.

Comex Gold Continuous Contract 4 Hours and Daily Chart