Wednesday, April 22, 2009

Sideways movement for gold today.

Gold closed marginally lower yesterday on profit taking, losing a mere 90 cents as Dow Jones managed to turn higher. Currently the precious metal and the equities have an inverse relationship with nervous investors buying gold when stocks are down and vice versa liquidating gold positions when sentiment improves pushing equities higher. Some traders pointed out that despite the rebound in the Dow Jones the yellow metal hasn't collapsed and the modest decline could be interpreted as ongoing concerns lurking in the shadow.

The short term trend is bearish while the medium and long term trends are bullish.

Support: $878.55 (yesterday's low)
Resistance: $909.85 (high of 03/04/09)

Support: $864.25 (low of 20/04/09)
Resistance: $899.45 (high of 15/04/09)

Support: $851.90 (low of 23/01/09)
Resistance: $895.20 (yesterday's high)

9 day moving average - $883.02
14 day moving average - $882.23
40 day moving average - $911.06

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