Thursday, October 1, 2009

GOLD: Still Targeting The 1,024.00 Level.

GOLD: Although Gold is now backing off higher prices following its price halt at 985.10 and subsequent recovery higher, it continues to retain its overall medium term uptrends. With that said, the commodity has to now close back above its minor resistance at the 1,009.60 level to resume the mentioned recovery and open up upside risk towards the 1,024 level, its YTD high. Beyond the latter will create scope for a push towards its 2008 high at 1,030.85 with a break of there resuming its longer term uptrend targeting the 1,050 level initially and then the 1,100 level. Immediate support lies at the 985.10 level, its Sept 29’09 high with a clean break and hold below that level pushing Gold further to the downside towards the 969.90 level, its MT rising trendline. We envisage that the trendline will provide and cap declines if seen but a violation of there will expose the 930.03 level, representing its Aug 16’09 low. On the whole, our bias on Gold remains to the upside in the medium to longer term suggesting that its current price action remains corrective.

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