Gold Daily Technical Outlook

Oil N' Gold Team from Oil N' Gold at 11/19/09

Comex Gold (GC)

With 4 hours MACD crossed below signal line, an intraday top is in place at 1153.4. Some consolidations could be seen in gold but downside is expected to be contained by 1125.8 support and bring rally resumption. Above 1153.4 will target 161.8% projection of 985.5 to 1072 from 1026.9 at 1166.9 next. However, break of 1125.8 will indicate that a short term top is in place with bearish divergence conditions in 4 hours MACD and RSI. Deeper decline should be seen to 1026.9/1072 support zone in this case.

In the bigger picture, the long term up trend in Gold is still in progress. 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 treated as the third wave and is now targeting 100% projection of 681 to 1007.7 from 931.3 at 1258 next. We'll hold on to the bullish view as long as 931.3 key support holds.

Comex Gold Continuous Contract 4 Hours and Daily Charts