Oil N' Gold: Gold Weekly Technical Outlook Oct. 9th

Gold rose to another record high of 1366 last week before turning sideway. A short term top is possibly formed and some consolidations would be seen initially this week below 1366 level. Though, strong support should be seen at 38.2% retracement of 1155.6 to 1366 at 1285.6 to contain downside and bring up trend resumption. Break of 1366 will target 161.8% projection of 1084.8 to 1266.5 from 1155.6 at 1449.6 next.

In the bigger picture, rise from 1155.6 is treated as the fifth wave of the five wave sequence from 1044.5, which should also be fifth wave of the rally from 681 (2008 low). Recent acceleration suggests that current rally would probably extend further to 161.8% projection of 931.3 to 1227.5 from 1044.5 at 1449.6 before completion. Though, we're aware of long term projection target of 100% projection of 253 to 1033.9 from 681 at 1462 and we'd anticipate strong resistance from there to bring medium term correction finally.

In the long term picture, rise from 681 is treated as resumption of the long term up trend from 1999 low of 253. The anticipated correction didn't happen and gold will now likely climb further to 100% projection of 253 to 1033.9 from 681 at 1462 before making a top.

Comex Gold Continuous Contract 4 Hour, Daily, Weekly and Monthly Charts.


Register for all the latest MarketClub Trader's Blog postings Today

Share