Markets

GOLD: Sets Up For A Run At 1,576.20 Level

With a second week of upside gains seeing the commodity following through on the back of its previous week gains and also breaking through the 1.526.26 level , its May 11'2011 high, further strength should build up towards the 1,576.20 level, its 2011 high. Gold continues to maintain its bullish long term uptrend but must break and hold above the 1,576.20 level to resume that uptrend. This if triggered will open the door for more gains towards its psycho level at 1,600 and then the 1,650.00 level. Its weekly RSI bullish and pointing higher supporting this view. On the downside, support resides at the 1.526.26 level, its May 11'2011 high with a turn below there targeting the 1,470.00 level and then the 1,462.15 level, its May 05'2011 low. Further down, its .618. Fib Ret (1,380.85- 1,576.20 rally) at 1,455.00 comes in as the next downside target and possibly lower towards the 1,443.70 level, its April 12'2011 low. All in all, Gold remains biased to the upside in the long term but must take out the 1,576.20 level to resume that trend.

Commodity Technical Outlook

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Commodities