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Gold where to?

Posted by Valeria Bednarik in December 9th 2009  

You know  I’m mostly a Forextrader, and a studier of the behavior of major pairs. I have studied during years that behavior, and I started watching more seriously gold charts just a few months ago. I found out that technical indicators are not the best tool to apply here at least not for me, but gold works pretty fine with Fibonacci (that’s a tip from our old friend CVJ that has traded gold for long. Tks CVJ!) Anyway, gold has been retreating to Fibonacci levels after each rise, and this time is no exception: downside rally reached exactly the 50% retracement of the last daily upside leg, and we are going slowly to the upside with 1150 level as immediate resistance to watch, as it represents the 38.2% of that rally. If gold regains that level, we are probably going to see further strength in the metal. 1102 and 1070 are key supports to watch if we break under today’s low.

 

 

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Filed under: Forex Advisor