Wednesday, December 9, 2009

Gold Update


The high on Dec 3rd (D) was near the 1.618 Harmonic from the Oct 08 - Feb 09 rally (A-B). It has since fallen precipitously shaking many of the weak bulls from the market. There is a cluster of support in the $1000-$1020 range which is coincident with the February 09 high and representative of a 38.2% retracement (100-61.8) of the Oct 08-Dec 09 rally. (A-B-C-D)
Mid January 2010 represents a 1.618 time harmonic of the Oct 08 - April 09 low to low cycle (A-C).
If Gold is trading in the $1020 area in the mid-January time frame (ideally Jan 17-20), conditions may be ripe for a potential resumption of the uptrend.

No comments: