GOLD: Now In Uncharted Territory
GOLD: A sharp rally through its all time high today has put Gold in uncharted territory suggesting that with no known overhead resistance in sight, the commodity now looks to head further higher. This is coming on the back of a rally initiated off the 781.72 level in Oct’08. Its current medium to longer term uptrend resumption has been turned off the 1,000 level on several attempts and that leaves its present strength a suspect until that break holds above the 1,030.86 first on a daily closing basis today and then weekly on a closing basis at the end of the week. Resistance levels are seen at the 1,050 level, the 1,100 level, the 1,200 level and then the 1,250 level, all serving as its psycho levels. The daily studies have both turned higher supporting its present breakout. Its just violated support at the 1,030.86 level is now expected to reverse roles and provide support thereby turning the commodity higher again. However, if the latter level gives way, Gold could decline towards the 1,015.10 level, its intra day low with a break through there setting the stage for further weakness towards the 1,000.95 level, its Oct 05’09 low. On the whole, with a break through its strong resistance seen, risk of further upside gain is likely to occur in the days ahead.
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