Gold and Silver Info: Gold Daily Technical Outlook

Thursday, November 25, 2010

Gold Daily Technical Outlook

ONG Focus | Technical | Written by Oil N' Gold | Wed Nov 24 10 07:09 ET

Gold's choppy recovery is still in progress and intraday bias is cautiously on the upside for further rise. However, note that break of 1424.3 is needed to confirm up trend resumption. Otherwise, we'd expect another fall to continue consolidations. On the downside, below 1347.9 minor support will flip intraday bias back to the downside. While it's a bit early, we'd like to point out that decisive break of 1315.8 will complete a head and shoulder top reversal pattern and should bring much deeper fall.

In the bigger picture, rise from 1155.6 is treated as the fifth wave of the five wave sequence from 1044.5, which should also be fifth wave of the rally from 681 (2008 low). Such rally is still expected to continue towards 161.8% projection of 931.3 to 1227.5 from 1044.5 at 1449.6 before completion. Though, we're aware of long term projection target of 100% projection of 253 to 1033.9 from 681 at 1462 and we'd anticipate strong resistance from there to bring medium term correction finally. On the downside, however, break of 1315.8 support will be an early alert of medium term reversal and will turn focus back to 1155.6 support for confirmation.

Comex Gold Continuous Contract 4 Hours Chart