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Pullback in Gold Looks Set to Continue

17 December 2009

The Commodity Specialist view -



The acceleration upwards in the second half of 2009 recently reached the Fibo projection we had shown in the Commodity Specialist Guide, at 1220, 1.618 swing off prior 1014.60/681.00 2008 downmove.

Reaction here has been negative, prompting a pullback phase.

On this chart note potentially strong support from the prior highs above 1000.



On this chart the uptrend failed just ahead of a growth projection we had calculated.

When the first dual Fibo support just above 1150 was breached a pullback phase was confirmed

The next dual Fibo support just above 1100 is so far being effective, but any s/term strength is seen as temporary ahead of a further slip. The 61.8% & 76.4% bounce levels at 1183 & 1200 should indicate the maximum extent of any s/term recovery.

Next target is the lower support area in the 1070s, which includes 50% and 76.4% levels, and 14-Oct high. Ultimately support from around the 1012.90 Feb high should hold, but at present it is hard to gauge whether this will be seen.




Philip Allwright

Mark Sturdy

Seven Days Ahead

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