Wednesday May 28, 2008 - 09:06:23 GMT
Share This Story
ForexManage Ltd. - www.forexmanage.com
Gold situation up to 27-05-2008
Gold is the asset that shows you two things: How the US Dollar is faring and how high is the fright of a financial meltdown. This is why it is quite important for FOREX traders to be up to date in the situation of the metal.
We will try to show its situation with the following weekly chart:
1. Gold is in an uptrend and its price is governed by a rising channel, with some parallel inside lines (in blue). Currently, the price has reached from below one of these parallel and has been repelled (2 blue).
2. For guidance from a similar situation we can see what happened when the metal was in a corrective phase (august 2006). Then, it reached the same parallel while the RSI and StochRSI stopped and reversed near 50.
3. The price is also repelled by the 8 weeks price channel (yellow) that is coming from above very quickly.
4. If we look at some Fibonacci retracements, we can see that the correction from the top ($1030) has taken 50% of the whole ascent from the $650 area. The last correction up took also 50% of the descent (1 blue).
5. If you look closely, the MACD histogram was going up but seems to stall and reverse back down now.
We think that GOLD is going to $800.
The reason for this prediction is that we see now the descent from $1030 to $850 as an A (that accomplished 50%) in an ABC corrective phase. B was the move up to $940 (50% again) and now C should begin and reach, at least, the 61.8% retracement level, near $800
If GOLD should break up over the $950 in an assertive way, this scenario will be annulled.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."