Price of Gold may fall

Gold has continued in a sideways trading range during the last week.

It’s looking very much as though it could fall to the downside fairly soon, but until it does the range is roughly between 925 – 854. A break downwards should find support between 840 – 821.

Any move below 777. would jeopardize the bullish action of the last month.

R1 – resistance area – the top of the two week old trading range.
S1 – support area – the bottom of the two week old trading range.
S2 – a zone of strong support.
S3 – critical support area for the uptrend.
Stochastic – Indicates the correction in Gold is probably not over yet.
NextView RSI – down, but in relatively positive territory.


Daily Gold price chart as at 2 October 2008 using NextVIEW Advisor

Commentary and analysis by Don Schellenberg