Wednesday, April 7, 2010

Gold Update

The trading cycle from the March 2008 high (1033.90) Nov 2008 low (681.00) met resistance at the PHI Harmonic (1.618) near the 1226.40 high in Dec. 2009. The ensuing decline found support at the PHI/1 support line extending from the 681.00 low. (green line)
The counter trend resistance line from 989.60 intersected the 1.618 arc at the 1226.40 high.

Gold is currently testing the inverse PHI/1 resistance at 1135-1140. If this resistance is overcome Gold could rally further--perhaps testing the Dec 2009 high @ 1226.40.

Cycles are indicating that May 20-24th will be an important time frame for Gold.

click mouse for larger image.

The shorter term chart beloew indicates how prices have been contained in the fibonacci retracement levels and the fibonacci fan lines coming off the 1226.40 high of December 2009. THe recent rally commenced when the .618 cycle from the high (inner blue circle) intersected the cycle of the 1044.80-1144.80 rally. (purple circle). A break above the 1158 level would suggest continued strength in GOLD.
click mouse for larger image.

The XAU chart is indicating strength similar to the GOLD chart. Prices have sound support at the fibonacci fan line (2.618:1) emanating from the October 2008 low @ 63.52. The parallel fan line extended from the June 2009 high touched the 198.32 high at the same time that the .618 cycle from the first advance (Oct 08 - June 09) (inner blue circle)
Currently prices are testing the 2.618: 1 resistance fan line coming from the 198.32 high.

A decisive break above 180 will bode well for higher prices.

No comments: