Sunday, August 1, 2010

Technical analysis Gold

 Gold has been trending down since late June after hitting an all time high at ~1260. Since then, we now have lower highs and lower lows which is the definition of a downtrend. The price is below three of the moving averages of 15, 50 and 100 which is a bearish sign. If we continue down and break the Fibonacci support at the 50% level, we should have the next support around the 1130 level. I think we will trade sideways to maybe a bit lower for the month of August. Then keep your eye on the price action just before September hits as Gold tends to appreciate based on seasonals.

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