Gold Daily Technical Outlook

Oil N' Gold Team from Oil N' Gold at 10/30/09

Comex Gold (GC)

Gold's break of 1045.8 minor resistance suggests that an intraday low is in place at 1026.9. Intraday bias is flipped back to the upside and further rise could be seen to retest 1072 first. With mentioned 38.2% retracement of 931.3 to 1072 at 1018.3 intact, we'll holding on to the bullish view that recent rally is gold is still in progress and break of 1072 will target 1100 psychological level first. However, note that strong break of 1018.3 fibo level will dampen this bullish case and argue that deeper fall is in progress for 985.5 support instead.

In the bigger picture, the long term up trend in Gold has resumed after taking out 1033.9 resistance firmly. 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 expected to extend to 61.8% projection of 681 to 1007.7 from 931.3 at 1133.2 first and then 100% projection at 1258 next. On the downside, though, break of 985.5 support will dampen this bullish view and will turn focus back to 931.3 support instead.

Comex Gold Continuous Contract 4 Hours Chart