Price Of Gold Support level at US$930

A week ago, gold had risen to a resistance zone near the July 15/08 high of 989.60. As suggested, downward pressure and profit taking have indeed driven the market down to its’ current value of 953.30.

Important support is nearby the current price – around 930. It’s probable that gold will reach this level before making a new high above 1,008. The next few days will likely produce sideways activity in the market.


Daily Gold chart as at 26 February 2009 using NextVIEW Advisor. Click on chart for larger view.

TECHNICALS

R1 – nearby resistance between 983. – 992.
R2 – 1,008.
S1 – a nearby support zone between 930 – 918, with 918. being the most important.
EMA 20 – supporting the market.
SMA 200 – around 860. The longer the market remains below 1,008., the more the market will be attracted to the region of the 200SMA.
Ichimoku Kinko Hyo – This is included because of its’ uniqueness. It shows support in the general area of the 200 day moving average.

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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.