Todays Outlook for Spot Gold, and WTI crude
Wednesday, February 22, 2012
by Carol Harmer of Charmer Charts
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Taken from www.charmercharts.com
Spot Gold:
Gold has targeted the Feb highs so far at 1763 and we have stopped just short at 1760.
The market is severely over bough in the short term and there is a large risk of a top here now
with a sell off to follow. Any longs should be exited now because of this risk. A move back be-
low 1750 should confirm weakness is creeping in as we then look for a test of support at
1739/36. Take profits on any shorts here as there is a good chance of the market bottoming
here and bouncing back in the later part of the day. Stop losses needed below 1726 for a test
of 1720 support.
A break above 1767 keeps the bulls in control for a move to 1785 and quite possibly
1796/1802 later in the week.
WTI Crude:
WTI Crude Oil managed to break above 106 and has so far reached 106.22 as we look for the next target of 106.69/95. This is where we meet a 2 year long trend line so we need to take profits on long positions in this band. Watch for sellers here as this looks to be very tough resistance at this stage. Only a break above 107.50 would then allow bulls to persue the next target of 108.47.
Look for support today at 105.50 and then 105.05/95. Expect to see buyers here with a good chnace of a bounce in the market. Attempt longs here therefore but stop losses need to be placed below 104.50 as a move lower would then target another buying opportunity at 104.16/12. Stops needed below 103.50.
Carol Harmer has over 30 years experience of analysing and trading the world’s markets and is undoubtedly one of the most respected technical analysts in the world today.
Her career started in the early eighties, trading futures on the floor at LIFFE where she quickly discovered Technical Analysis as a way to maximise profits. She was one of the first traders on LIFFE to discover and study this form of analysis and quickly became widely recognised as an expert in its use as well as highly profitable.
This soon led to a position as Senior Technical Analyst for Midland Bank.
She was later head hunted for the role of Manager of Technical Analysis for Nomura Bank and then as Head of Technical Trading at Credit Suisse. Carol is also one of the first T/A's from a bank to join the STA (The Society of Technical Analysts) in the mid 80's and has trained and worked with some of the UK’s leading technical analysts.
In 1996 Carol launched 'Charmer Charts' to train independent traders in technical analysis and became the first person to provide daily forecasts for the established traders on the LIFFE floor.
She returned to the floor, trading her own account, advising traders throughout the day and continued her appearances on Bloomberg, CNBC and Reuters financial TV where she provided her valued, expert opinion on the direction of financial markets.
