Price of Gold - Next Upside Target around US$931.50 per troy ounce

As mentioned last week “The short term trend in gold is up, with the markets upside target around 871.”

That target has already been reached intraday.

Resistance around $829. was quite strong as expected, and sent the market sideways for a couple of days, followed by a strong downward spike that had no follow-through.

The next upside target around $931.50 is not far away and should be reached soon, probably to be followed by some minor corrective action before the upward journey begins again.


Gold chart as at 18 December 2008 using NextVIEW Advisor. Click on chart for larger view.

TECHNICALS

Stochastic – overbought
MACD – strongly up
200 MA – now below the market and flattening out.
EMA21 – short term moving average, sloped up, supporting the market rally

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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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