ONG: Gold Daily Technical Outlook For Tuesday Dec. 13th

Gold dives further to as low as 1654.4 so far today. The break of 1667.1 support confirms resumption of whole decline from 1804.4. Also, it suggests that a rebound from 1535 is finished already. Intraday bias remains on the downside and deeper fall should be seen to 100% projection of 1804.4 to 1667.1 from 1767.1 at 1629.8. On the upside, above 1688.0 minor resistance will turn bias neutral and bring consolidations. But we'll stay bearish and expect another decline as long as 1767.1 resistance holds.

In the bigger picture, price actions form 1923.7 high is viewed as a medium term consolidation pattern only. The first leg has finished with a five to 1535. The second leg is likely completed at 1804.4. Fall from there is treated as the third leg of the consolidation and should target 1535 and possibly below. Though, at this point, we'd anticipate strong support from 1478.3/1577.4 support zone to complete the consolidation and bring up trend resumption.

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

Gold Daily Technical Outlook For Friday

Gold's rally is still in progress and reaches as high as 1159 so far. Intraday bias remains on the upside and gold should be targeting 1163 resistance next. Break will bring retest of 1227.5 high. On the downside, below 1144.0 minor support will suggest that a temporary top is formed and bring retreat because staging another rally.

In the bigger picture, price actions from 1227.5 are treated as correction to rise from 931.3 only, no doubt. The lack of impulsive structure of rise from 1044.5 argues it's possibly part of consolidation from 1227.5, rather than resumption of the long term up trend. Above 1145.8 will bring retest of 1227.5 high but upside will likely be limited there and bring at least one more fall before the consolidation concludes. On the downside, below 1084.8 support will shift favors to the case that correction from 1227.5 is developing into a three wave move with another low below 1044.5.....Comex Gold Continuous Contract 4 Hours Chart.


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Gold Daily Technical Outlook For Wednesday Morning

Gold's break of 1131.5 resistance confirms that whole rise from 1044.5 has resumed. As noted before, this also strongly suggest that whole correction from 1227.5 has completed with three waves down to 1044.5 already. Further rise should now be seen to 1163 resistance for confirmation. Break will target a retest on 1227.5 next. On the downside, below 1115 will turn intraday bias neutral. But further rally would remain in favor as long as 1088.5 support holds.

In the bigger picture, price actions from 1227.5 are treated as correction to rise from 931.3 only. Current development suggests that it's completed with three waves down to 1044.5 already after being supported by 61.8% retracement of 931.3 to 1227.5 at 1044.4. Break of 1163 resistance will further confirm this case and target a new high above 1227.5 to resume the long term up trend.....Comex Gold Continuous Contract 4 Hours Chart.


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Gold Continues in C Wave Down

From guest blogger David Banister....

1. I predicted on December 4th for my partners that Gold could pullback to the 1040 to 1070 US ranges, with a mimimum of 1070 likely. So far the Gold pivot lows have been to 1074, bounced up, re-traced to 1090, ran to 1145, re-traced to 1090 again. I got the partners in my service us out of several gold positions issuing take profit alerts on the B wave bounce to 1135 recently, and we have held a few. We sold our ICI.TO, JIN.TO, and AAU at much higher levels and remain out of those positions.

2. Gold now appears to be in the C wave down in this corrective pattern from the Dec 3 highs. It appears to me the $1040 US target is more likely now, and possibly lower. I have a GLD ETF chart below.

I see a Gap at 102.50 on the GLD chart, and there is a chance that will fill. This would represent a 50% Fibonacci pullback of the entire advance from April 2009 into December 2009. A 61% retracement would push Gold even lower towards the 97-98 areas on the ETF. I would not be going long Gold right now until we see the patterns complete. I would also avoid going long Gold stocks just yet. They will bottom before Gold bottoms, but the timing is still off.

The dollar is likely to bounce a bit further and a break over 79 on the Dollar to the upside certainly leads to another leg down in Gold.

With that said, we will monitor some Gold stocks for some washout pivot lows to possibly trade into at the right time. I have avoided getting back into GSS for example because the chart is not yet right.



Make sure to visit David at Active Trading Partners.

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