Gold: Price Likely to Test Oct 24th Low of 681.50

I noted that momentum indicators showed some upward pressure in this market last week. The market, however, only spiked marginally higher to 769. before slipping down over the next couple of days to it’s current level at 714.

Nearby resistance is around 728. which was previously a support level. A test of this area is possible but the weight of evidence at this time points to a likely test of the Oct. 24th low of 681.50, to occur in the near future.


Gold chart as at 13 November 2008 using NextVIEW Advisor

TECHNICALS
Stochastic – sharply down
RSI – flat, below it’s 50% level.

R1 – resistance at 728.
R2 – 778.- at the top of the recent range.
S1- nearby support at 681.50
S2 –(not shown on the chart) 656.

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Article and Commentary by Don Schellenberg. A trader and trading coach, he is a noted expert on Market Structure, Elliott Wave and Fibonacci. He trades the forex market.