Home Site Map About Us Privacy Policy Advertise (pdf) Contact Us
 
 
sitesearch
 

counter

Gold & Crude Strengthen As The Dollar Weakens

By Colin Twiggs
May 12, 2009 0:30 a.m. (2:30 p.m. AET)

These extracts from my trading diary are for educational purposes and should not be interpreted as investment or trading advice. Full terms and conditions can be found at Terms of Use.

Gold

Spot gold is testing resistance at $920. Breakout would confirm the correction has ended — and signal another test of $1000. Reversal below $880, on the other hand, would warn that the decline is likely to continue. And penetration of $865 would confirm.

Spot Gold

Source: Netdania

Silver

Spot silver is testing resistance at $14.00 after ending its recent correction. Breakout above $14.75 would confirm the primary up-trend — and add weight to the likelihood of a gold recovery. Reversal below support at $12.00 is unlikely, but would signal a test of $9.00.

Spot Silver

Crude Oil

West Texas Crude is in a primary up-trend, having completed a flag continuation pattern. The target of $65 is calculated as 50 + [50 - 35]. Reversal below $50 is unlikely, but would test primary support at $35.

Crude Oil - West Texas Intermediate Light

Source: Netdania

US Dollar Index

The US Dollar Index indicates that both gold and crude oil are likely to strengthen. Having penetrated the lower border of a large rising wedge reversal pattern, the index is now testing support at 82.50. Breakout would confirm the primary down-trend; with a target of 75, calculated as 85 - [88 - 78]. Recovery above the declining (brown) trendline is unlikely, but would warn of a false signal.

US Dollar Index


The American Republic will endure until the day Congress discovers that it can bribe the public with their own money.

~ Alexis de Tocqueville (1805 - 1859)

Perfect Your Market Timing
Learn how to manage your market risk.





The weekly Trading Diary offers fundamental analysis of the
economy and technical analysis of major market indices,
gold, crude oil and forex.
The monthly What's New newsletter covers new articles
on Trading and the Economy, as well as new software updates.


 
Top of Page