Thursday, April 23, 2009

Today's forecast- Gold's out of congestion

Gold moved higher yesterday helped by a lower US dollar and continuing worries about the financial sector given the fast approaching stress test results. Additional support for the yellow metal was provided by the combination of short covering and inflation buying after o housing report showed that US home prices rose in February. A cross between the 9 and 14 day moving averages was shown on the chart and together with a close above these short term M.A. are two bullish signals. We are looking at the $900.00 mark as the next upside target.

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

Support: $881.40 (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: $893.50 (yesterday's high)


9 day moving average - $885.29
14 day moving average - $882.89
40 day moving average - $909.98

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