Gold Daily Technical Outlook

Oil N' Gold Team from Oil N' Gold at 12/22/09

Comex Gold (GC)

Intraday bias in gold remains on the downside and the current decline from 1227.5 is still expected to continue to 50% retracement of 931.3 to 1227.5 at 1079.4. Break there will target 61.8% retracement at 1044.4 next. On the upside, above 1120.8 minor resistance will will argue that a short term bottom is formed and bring stronger recovery. But after all, 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 to another high above 1227.5.

Comex Gold Continuous Contract 4 Hours Chart