Gold Daily Technical Outlook

Oil N' Gold Team from Oil N' Gold at 11/16/09

Comex Gold (GC)

Gold makes another record high of 1133.5 today and remains firm so far. At this point, short term outlook will remain bullish as long as 1101.2 support holds. Sustained trading above mentioned 61.8% projection of 681 to 1007.7 from 931.3 at 1133.2 will set the stage for 100% projection at 1258 next. However, since 1133.2 is already met, break of 1101.2 will indicate that a short term top is at least formed and bring pull back towards 55 days EMA (now at 1042.5) instead.

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 treated as the third wave and 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 1072 resistance turned support will confirm 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 Chart