Gold Daily Technical Outlook

Oil N' Gold Team from Oil N' Gold at 11/25/09

Comex Gold (GC)

Gold's rally extends further to 1182.4 today so far and remains firm. Short term outlook will remain bullish with 1156.3 minor support intact and gold should now be targeting 1200 psychological resistance first. Break will target next medium term projection level at 1258 next. On the downside, below 1156.3 will indicate that a short term top is in place and bring pull back. But after all, downside is expected to be contained well above 1072 resistance turned support and bring rally resumption.

In the bigger picture, as noted before, rise from 681 would likely develop into a 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. Next target is 100% projection of 681 to 1007.7 from 1258. On the downside, however, break of 1072 resistance turned support will argue that rise from 931.3 has completed and some lengthier consolidations should be seen before the long term up trend resumes.

Comex Gold Continuous Contract 4 Hours and Daily Charts