Long Term prospect for gold is much higher

Gold has run into resistance near the July 15th high of 989.60. The previous high plus the channel lines on the chart, may exert some downward pressure, but it’s highly unlikely to last for long.

Although the long term prospect for gold is much higher, near term there is likely strong resistance around the March, 2008, high of 1033.90.

Converging Fibonacci lines appear around 1033. – 1044, so caution should be exercised and ‘exuberant optimism’ avoided, in this area.


Daily Gold chart as at 19 February 2009 using NextVIEW Advisor. Click on chart for larger view.

R1 – immediate resistance at the July, 2008 high of 989.60
R1 – a zone of resistance at the March 2009 high of 1033.90 – 1044.
S1 – 931.

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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.