Members login
Gold In A Rounded Top To Start US Session
Written by article default Monday, 11 April 2011 15:09
Gold (XAU/USD)
Short to Medium Term
- Gold rounded off a top to start the week by the time the US session started.
- The 1H chart shows the pivot at 1465 being tested. The 1H RSI is also testing 40, a break below which suggests lost of bullish momentum.
- Below 1465, at least decline to the middle of the previous consolidation zone (near 1455) is anticipated.
- We might get a pullback from here, but if it respects the top, for example by not breaking above 1465, we should be seeing a more significant correction.
- An equality of the correction from March 24-20 targets 1440 area. This would be a significant correction but we should find support near the 1440 area. I would look for support between 1440 and 1445 if the market breaks below the 1455 level and fails to break back above 1465.
- We should not really consider the bearish outlook until the market can break below 1410. We can look for a correction to 1380 if this happens.
- The more likely scenario is that the market will respect 1440. If not, it might still remain above 1410, maybe near 1435, 61.8% retracement. The point is that gold is very bullish, and very likely to continue the path towards 1510 after resolving short term overbought conditions.
Will silver outperform gold in 2011 ?