Thursday, October 20, 2011

Gold Trading range

Daily chart of the World Gold Index from February 2011.

A fibonacci retracement is drawn from the lows in Jan to the double peak in Aug / Sept.  Gold is in a trading range between the 61.8% and 50% fibonacci levels.   Gold is up ~13.7% year to date and can also be seen as consolidating after the huge run up between July and early Sept.
The turn of the month may bring a movement either up or down. (Being a PM bull, I'm leaning towards the upside).  Being bullish at this time is opposite to the chart formation as Gold is trading under the 20, 50 and 100 day moving averages.

Next week:  Oct. 27   Comex October gold futures last trading day

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