Spot gold finds support

By Colin Twiggs
January 12th, 2011 2:00 a.m. ET (6:00 p:m AET)

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Spot gold found support at $1500/ounce. Failure of this level would confirm a primary down-trend. Breach of the descending trendline would indicate that a base is forming, while recovery above $1800 would indicate a fresh primary advance to $2300*. We are unlikely to witness another bull-trend, however, unless the Fed introduces QE3.

Spot Gold

* Target calculations: 1900 + ( 1900 - 1500 ) = 2300

US Dollar Index

The Dollar Index continues in a primary up-trend after twice successfully testing support at 79.50/80.00. Target for the advance is 85.00*.

Dollar Index

* Target calculations: 80 + ( 80 - 75 ) = 85





Don't be afraid of missing opportunities. Behind every failure is an opportunity somebody wishes they had missed.

~ Lily Tomlin

Colin Twiggs

Author: Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.

Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.

Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.

He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.