Gold Daily Technical Outlook

Oil N' Gold Team from Oil N' Gold at 11/23/09

Comex Gold (GC)

Gold's rally resumed by taking out 1153.4 and reaches another record high of 1167.8. Short term target of 161.8% projection of 985.5 to 1072 from 1026.9 at 1166.9 is met but there is not sign of topping yet. Short term outlook will remain bullish as long as 1132.5 support holds. Sustained trading above 1166.9 will target 1200 psychological resistance next. On the downside, below 1132.5 will indicate that a short term top is formed, possibly with bearish divergence condition in 4 hours MACD. IN such case, some pull back should be seen but downside should be contained above 1072 resistance turned support and bring rally resumption.

In the bigger picture, as noted before, rise from 681 would likely 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. Next target is 100% projection of 681 to 1007.7 from 1258. On the downside, however, break of 1072 resistance turned support will argue that rise from 931.3 has completed and some lengthier consolidations should be seen before the long term up trend resumes.

Comex Gold Continuous Contract 4 Hours and Daily Charts