Wednesday December 23, 2009 - 15:54:35 GMT
Share This Story
FX Solutions - www.fxsol.com
Chart of the Day - 12/23/2009 β Gold
(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; 50-period simple moving average in light blue.)
12/23/2009 β Gold β Within the month of December, the dramatic bearish correction in spot gold (a daily chart of which is shown) has brought price action severely off the all-time high around 1225 hit early in the month. This month-long bearishness has thus far corrected the steep, and subsequently overbought, run-up in Gold that had occurred for several months prior to that all-time high being reached. Despite this current bearish correction, gold is still very much within the bounds of overall uptrending mode. The drop that occurred this month has brought price down to a 61.8% Fibonacci retracement level of the run from the 985 low in early October to the 1225 all-time high. This retracement level also represents a strong support area in the 1070 price region. Any breakdown below this region should meet further support at the long-term uptrend support trendline, if the uptrend is to be kept intact. And any breakdown of that trendline, which would jeopardize the uptrend, should meet immediate further downside support in the 1025 price region. To the upside, if a pronounced bounce occurs at or around the aforementioned 61.8% level, confirmed by a strong breakout above the steep downtrend resistance line of the bearish correction, gold could very well be on its way to recovering the gains made prior to this monthβs bearish correction.
James Chen, CMT
Chief Technical Strategist
IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.
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."