Thursday, June 11, 2009

Consolidation seen for gold today.

Initially gold went higher but following the strengthening in the US dollar it ended the trading session into negative territory. However the $2.90 decline in gold seemed to be a consequence of longs liquidating to book profits rather than investors getting short, a sign that markets are still sceptical about a follow through in the greenback's rebound. Technically we saw an 'Outside Day' pattern (higher high and lower low) with the chart showing a price action resembling consolidation move.

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

Support: $946.63 (yesterday's low)
Resistance: $989.95 (high of 03/05/09)

Support: $935.55 (low of 21/05/09)
Resistance: $980.17 (high of 29/05/09)

Support: $924.75 (low of 20/05/09)
Resistance: $965.40 (yesterday's high)

9 day moving average - $963.75
14 day moving average - $961.93
40 day moving average - $928.00

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