• 556 days Will The ECB Continue To Hike Rates?
  • 556 days Forbes: Aramco Remains Largest Company In The Middle East
  • 558 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 958 days Could Crypto Overtake Traditional Investment?
  • 963 days Americans Still Quitting Jobs At Record Pace
  • 965 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 968 days Is The Dollar Too Strong?
  • 968 days Big Tech Disappoints Investors on Earnings Calls
  • 969 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 970 days China Is Quietly Trying To Distance Itself From Russia
  • 971 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 975 days Crypto Investors Won Big In 2021
  • 975 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 976 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 978 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 979 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 982 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 983 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 983 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 985 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

ChartWorks: Gold Update

Originally published by Institutional Advisors on October 4, 2006.

Technical observations of RossClark@shaw.ca.

Gold's rally to $607 last week satisfied the minimum interim upside targeted resistance of $600-$610, but came well short of the $626 that would be needed to confirm a major breakout. The subsequent break of support now requires an update in the analysis.

Over the years, gold has shown a tendency to make 50% to 60% retracements within rising and declining trends. In the early stages of a trend these retracements tend to overlap the previous trading range, but fail to penetrate the midpoint of the prior consolidation. The rally into September 28th retraced 53% of the decline from the September 5th high of $640 and marginally overlapped the July 24th low of $602.

Now that prices have violated the September support we can lower the important upside resistance level from $626 to $588. A close above there would be viewed as a catalyst for a renewed bull market move. In the interim, resistance should be encountered on 50% to 60% retracement rallies of the break from $607.

Examples of resistance

Here is what happens once prices move up through the midpoint of the 'last failed rally'.

 

Back to homepage

Leave a comment

Leave a comment