Tuesday, March 23, 2010

Consolidation Continues for GOLD

Since I don't have access to intraday $GOLD prices, I will be using GLD as the $GOLD proxy:

Looks like another continuation head and shoulders pattern is in process. Let's look at today's action:

On the 15 chart, we can see that GLD filled the gap today, and ran into resistance. GLD needs to clear 108.60, and the next resistance zone is in the 109.5 - 110 range. Take note of the "marker". From experience, I would say do not ignore these.

Looking at the 60 minute chart, we can see a lower high and a lower low. In other words, it looks like a short term down trend has started, and I have drawn a channel. GLD did find support at the 50% retracement level, but I am expecting one more lower low to reach the 61.8% Fibonacci retracement level. Once again look at those beautiful Fibonacci fan lines.

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