Gold Daily Technical Outlook

Oil N' Gold Team from Oil N' Gold at 12/14/09

Comex Gold (GC)

Gold continues to struggle above 38.2% retracement of 931.3 to 1227.5 at 1114.4 for the moment and downside momentum is diminishing a bit. Nevertheless, intraday bias remains mildly on the downside with 1148.4 minor resistance intact. Fall from 1227.5 is still expected to continue to Further decline should be seen to 50% retracement of 931.3 to 1227.5 at 1079.4 next. On the upside, above 1148.4 will turn intraday bias neutral and bring recovery. But upside should be limited below 1227.5 and bring another fall to continue the correction.

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 has possibly completed at 1227.5 after missing 100% projection of 681 to 1007.7 from 931.3 at 1258. Deeper pull back could now be seen to 1026.9/1072 support zone, or even further to retest 1000 psychological level. But downside should be contained well above 931.3 support and bring up trend resumption.

Comex Gold Continuous Contract 4 Hours and Daily Charts