Gold Daily Technical Outlook

Oil N' Gold Team from Oil N' Gold at 12/08/09

Comex Gold (GC)

With 4 hours MACD crossed above signal line, intraday bias in gold is turned neutral for the moment. A break above 1178.6 minor resistance will suggests that pull back from 1227.5 has completed and will flip intraday bias back to the upside for this resistance first. On the downside, while another dip cannot be ruled out, we'd still expect rise from 1026.9 to resume as long as 1130.1 cluster support holds (50% retracement of 1026.9 to 1227.5 at 1127.2) However, sustained break of 1127.2/11301 will indicate that rise from 931.3 has completed and deeper correction could then be seen towards 55 days EMA (now at 1097.9).

In the bigger picture, rise from 681 is expected to 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 and there is no confirmation of completion yet. Such rally is still expected to continue towards 100% projection of 681 to 1007.7 from 931.3 at 1258 next. However, decisive break of 1130.1 support will argue that rise from 931.3 has completed ahead of 1258 target and some deeper pull back could be seen to 1026.9/1072 support zone, or even further to retest 1000 psychological level, before resuming the long term up trend.

Comex Gold Continuous Contract 4 Hours and Daily Charts