Gold Views!

The weekly chart of Gold below shows that though we are still in a structural downtrend, with lower highs and lower lows. The recent lower high has to either break the recent low at $680 to confirm further bearishness or taking out $870 convincingly (looking for a triangle breakout here although the last two attempts have failed) will result in interrupting this structural downtrend. $870 is also the 61.8% fib value drawn from the highs of 987 to the lows at $680. No wonder it’s posing as a sissy! There is a confluence of 20 and 50 periods MA’s at $825 and $830 respectively and the 20(green) is trying to cross above the 50(blue) attempting a bullish crossover! Whereas breaking $760 can result in a downside break, and going in for testing of the 200 periods MA and $650 (the red long term trend line drawn from Jan 2002).

The daily chart below paints an interesting picture! The earlier DT formation met with its logical target and bounced back from the 50% retracement. Look at the last bar on the chart its encompassing all the three 20, 50 and 200 periods MA’s! The stoch above is turning up, the RSI has already broken its downtrend line and MACD has also ticked up. The ADX right at the bottom is still listless below 20; maybe it will wake up with the Price breaking $850 and head for that elusive $870! All in all GOLD is interestingly poised… let us see how this plays next week!

"I have not failed. I've just found 10,000 ways that don't work." Thomas Edison