Saturday, June 19, 2010

Record HIGH for GOLD! $1262

Gold hit's a record high on Friday, 6/18/2010 of just over $1262 an ounce at ~12 noon NY time.   


The XGLD chart is from Nov 2009 to June 18th 2010. The $1225 high of Dec 3rd 2009 was pierced two times for a double top before a third time for the new high.  I would expect this rally to continue to a possible $1300, but then pull back again before further new highs in the 4th quarter of 2010. A higher consolidation trading range may be setup from $1250 to $1300 before the next breakout.

Traders may want to take profits near this level as the price closed on the upper Bollinger band. The 15 day simple moving average is at $1230 which should provide initial support when a pull back occurs.

The MACD Histogram has a positive tick which is indicating and upwards bias for the bulls.

The K line Stochastic is over 80 and the D line at ~64 for an 'over bought' area. If the Stochastics 'embeds' (both lines over 80 for 3 days), we may see a rally to the $1300 area.

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