Short Term Gold Losses Confirm Bear Scenario
29 July 2010
The Commodity Specialist view -
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WEEKLY CONTINUATION CHART: For some weeks we have been noting in the Commodity Specialist Guide that the whole recovery from 2008 low looked like a type of 5-wave/ impulsive structure, a third/final upleg presumed commencing from the 1045.20 Feb low. Our latest Fibo projection had been reached, and the subsequent slip back has now given a further bear signal on the Daily chart. Here, keep in mind the 23.6% pullback level, at 1127.
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DAILY CHART - AUG-10: After earlier failure to hold onto higher levels above the previous 1230.70 peak, latest weakness has, after recent violations of small channel base support and 38.2% retracement, breached the 1170 support area. This provides a bear signal, The fact that the Feb/Jun chart structure was similar to that on the Weekly chart (impulsive, but could have run its course) served as a bearish warning too. Now, the first downside target is the 1133 61.8% pullback, which nicely coincides with 23.6% on that Weekly chart. Perhaps more important from the point of view of medium term momentum is the lower support implied by the bull channel base projection at 1080.00 currently. now favouring sellers on rallies. |
Philip Allwright
Mark Sturdy
Seven Days Ahead
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