Gold Daily Technical Outlook

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

Comex Gold (GC)

Gold's break of 1111.7 indicates that recent rise has resumed. At this point, intraday bias remains on the upside as long as 1097.2 minor support holds. As noted before, current rise from 931.3 is still in progress for next projection target of 61.8% projection of 681 to 1007.7 from 931.3 at 1133.2. On the downside, though, below 1097.2 will argue that a short term top is formed with bearish divergence conditions in 4 hours MACD. In such case, deeper decline should be seen to support zone of 1026.9 and 1072 first.

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 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 Charts