Gold Daily Technical Outlook

Oil N' Gold Team from Oil N' Gold at 11/18/09

Comex Gold (GC)

Gold's rally is still in progress and reaches as high as 1148.4 so far. At this point, intraday bias remains on the upside and further rally should be seen to 161.8% projection of 985.5 to 1072 from 1026.9 at 1166.9 next. On the downside, below 1127.8 minor support will turn intraday bias neutral and bring retreat 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 treated as the third wave and is now targeting 100% projection of 681 to 1007.7 from 931.3 at 1258 next. On the downside, break of 1072 resistance turned support will indicate 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