Gold bulls Remain in Strong Position
06 February 2009
The price of Gold has recovered from a low point last October, and is currently knocking on the door of the next key resistance – a break higher would give the next bull signal, as well as strengthening the bull case for the medium term.
WEEKLY CHART – CONTINUATION: Earlier on we had been suspicious of the overlapping/volatile price swings that made up the 2008 bear move. In the end they did indeed indicate a lack of impulsiveness on the bears’ part. Of course, we must still be prepared for further notable swings, but the medium term bias is more likely to be up now.
DAILY CHART – APR-09: Bulls have now reached the next 76.4% level, which currently coincides with a falling resistance line, and Oct high – a s/term struggle to breach this is not a surprise. Any pullback at this stage will ideally not be of greater magnitude than the last 892.20-803.60 slip. In the end, bulls desire supports to be found at/above the previous rally high, to imply strength –at current prices it is uncertain whether the 892.20 Dec high can provide such support yet. A higher 76.4% level at 965.00 is deemed the more significant hurdle in the course to a retest/violation of last year’s peak.
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