Monday, May 24, 2010

Gold needs mojo here..

If this wedge breaks down, 1146 would be on deck and 1157.6 is fib support/resistance.  This may coincide with a much weaker performance on all the indices tomorrow if the futures hold up...

Gold may react opposite the general market direction however, and it could be argued that the gold chart has seen a clear 5 wave move down and is due for a bounce.  It never reached the 61.8% fib, which could be interpreted as a sign of strength.  The ascending triangle shown in this chart has a 70% upside breakout potential.  The RSI still has room to go, sitting @ 60.  Would like to see a move into the 70's or 80's!

Best of luck





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