Gold is doing the breakout I thought it would, now trading above 50 DMA and trendline resistance in place since May. This is an important move and if the lows hold, a strong bullish bias is established. Support 600.90/602, resistance 605. Inverted head and shoulder gets confirmation on a close above the neckline now around 605/607 which would give a maximum projection to 650, although I think 620 will be strong resistance. Watch the 50 DMA as well at 602.15. The 600 level is a must hold now for bulls as it coincides with 200 day ema and ex-trendline resistance. But with lots of gold bears out there, the squeeze could be on.
This entry was posted
on Sunday, October 29, 2006 at 5:03 PM.
