Monday, December 27, 2010

Gold Dec 27th - Break up or down?

Gold is in a trading range as mentioned in last weeks analysis.  It is forming another sideways wedge between $1422 and $1361. It is most likely going to break up or down in the near future, possibly this year.  Gold is up 27.7% ytd, so a minor correction is expected by some and should not be very deep. If it does correct, it will affect Gold mining stocks much more as many of them have had 50%+ runs to the upside over the last 3 months.

The MACD Histogram has a slight bias towards the center line, so I'll give an edge to a break to the upside.

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