Gold Finds Support At $900
By Colin Twiggs
March 25, 2008 3:00 a.m. ET (7:00 p.m. AET)
These extracts from my trading diary are for educational purposes and should not be interpreted as investment advice. Full terms and conditions can be found at Terms of Use.
Gold
Spot gold is consolidating above support at $900 — which is expected to hold. Breakout below this level, however, would breach the rising trendline and signal weakness in the primary up-trend.
Source: Netdania
Crude Oil
May 2008 Light Crude formed an open-close reversal signaling strong support at $100. Expect consolidation between $99 and $102.50 followed by an upward breakout (crude is after all in a primary up-trend). A fall below $99, however, would signal a test of primary support at $86.
The strong primary up-trend continues on the weekly chart.
Currencies
The euro found short-term support at $1.53. Penetration of this level would test long-term support at $1.50. Gold and the euro tend to move in sync, so I am expecting a stronger retracement. Respect of support at $1.50 would confirm the strong primary up-trend.
Source: Netdania
The dollar retraced to test short-term resistance at 101.50 yen. Respect of this level would confirm the strong primary down-trend, with a target of the all-time low at 80.
Source: Netdania
The Australian dollar continues in a descending broadening top. Expect strong resistance at $0.9450 to $0.9500. A failed up-swing would warn of a breakout and test of primary support at $0.85.
Source: Netdania
The Aussie also displays a descending broadening pattern against the yen. Expect strong resistance at 100. A failed up-swing or (downward) breakout would offer a long-term target of 86-(108-86)=64.
Source: Netdania
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