Price of Gold: Downside Bias

As expected, resistance around 826. continues to hold. The three week old up-sloping trend line has been convincingly broken to the down side, creating additional resistance to any attempt of price to move up.

The down trend has halted temporarily to correct the strong bearish move that occurred on December 1, 2008.

Bias is to the down side.


Gold chart as at 3 December 2008 using NextVIEW Advisor. Click on chart for larger view

TECHNICALS

MACD – in positive territory, turning down.
Stochastic – sharply down.
200 SMA – sloping down, above price.
21 EMA – flat at the current price level.

R1 – 800.
R2 – 830.
S1 – 731
S2 – a zone between 700 – 681.50.

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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.

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