-- Posted Wednesday, 11 March 2009 | Digg This Article
| Source: GoldSeek.com
April Gold: Open= 896.9 High=913.8 Low=893.4 Last= 907.3 +11.4
Gold prices climbed back above $900 per ounce today, but the technical outlook still remains questionable. Certainly, today’s recovery did not set off any alarms to jump back aggressively on the long side as the charts provide no type of reversal action. Bulls will be looking for some type of basing action to develop near today’s range, with support holding near those $893 lows. Any move much lower than that will quickly erode through any technical support and give way to an easy slide down to $860.
Today was a relatively quiet news day, with the biggest item being the omnibus spending bill being passed by the Senate. This is a $410 billion government spending bill to keep the federal government running. Critiques have slammed the bill for including over 8,000 special spending projects (earmarks) and an 8% increase in government spending from one year ago.
A neutral energy stocks report failed to support any buying interest as crude, gasoline, and natural gas prices weakened. Of note to traders is the contango in the market, which has narrowed considerably in the past few weeks, but is inconsistent. On down days, the contango widens and on positive days it narrows. Bulls would like to see the contango narrow no matter what general move the market takes. Obviously, demand issues remain, as even a weaker dollar could not provide a lift.
The sideline may be a trading stance some might want to take until more consistency is seen the markets. The dollar has been negative all day, and as weakened further late in the session, yet crude is still down hard and gold manages just a small bounce. Right now there is little rhyme or reason as to what is the driving force behind moves, and that makes for very tough trading.
For now, the trend-line for gold is still at risk for being broken and the technical picture won’t be cleaned up until prices move above $944.00.
Review charts on these markets here www.britefutures.com. Remember that futures and options can be used for bullish or bearish positions; feel free to contact me to discuss trading strategies. Each contract/option = 100 ounces, a $1 move in a futures contract = $100.
To open an account and receive trading recommendations on gold futures or options contracts (also stock indices, energies, currencies, etc.), or to use PaperTrader Online contact us at info@altavest.com. Visit www.altavest.com to request a Free Trading Kit. Keep in mind that there is risk of loss in all trading.
Thank you,
Thomas Hartmann
Altavest Worldwide Trading, Inc.
800 994 9566 x109
949 488 0545 x109
Fax 949 488 7625
-- Posted Wednesday, 11 March 2009 | Digg This Article | Source: GoldSeek.com
