Gold Views!!!

All that Glitters is GOLD!!! Well so it seems if you see the last week’s run in the GOLD. People have starting shouting go BULL in gold now. After all with the world is scared that the equity market is going to be a bit more painful, so no harm in taking solace into the security of the yellow metal. In my last post on gold I had written that a convincing close above $ 870 will lead to what we would assume to be a triangle breakout! Now once again this becomes important because gold on retracement should take support here and try and move up. Failing to hold on this we have now a support zone established at $830approximately, where the 200 and 50 periods (on the daily chart) are lined up almost horizontally! The upper leg should test $930/40 before assuming any significance. There is a bit of negative divergence developing on the daily chart and hinting at OB situation. Gold is interestingly poised on the weekly charts too! Now let’s wait and see how this breakout pans out next week.

"Imagination is more important than knowledge" Albert Einstein