-- Posted Thursday, 13 August 2009 | Digg This Article
| | Source: GoldSeek.com
Dec Gold: Open= 950.0 High= 963.1 Low= 949.8 Last= 955.5 +4.1
The trending pattern in gold prices continues to leave traders flummoxed about which direction will prevail in the next few weeks. From a charting perspective, the winding pattern cannot continue much longer, with prices now constrained between $970 on the upside and $940 on the downside. Though the U.S. dollar remains in a downward trend, gold bulls have not been able to push prices higher, only sideways.
Today’s negative retail sales, inventories, and initial jobless claims nudged the dollar lower but despite the seemingly poor economic news, stocks were able to rally on some positive earnings reports. Still, even the highest close in the equities this year could not help gold from running into some stiff selling resistance just above $960 right after this morning’s open.
For gold, the chart is winding tighter and tighter, and a breakout on the chart will occur soon, either below $940 or above $970. December prices could not hold the 10-day moving average and at this stage, traders may want to be patient still and wait for gold to break out of this seven-month old, coiling chart pattern, and then follow the herd. While there are many bullish inflation arguments to be made, the market is not embracing those views at the moment.
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 our online paper trading service BriteTrak, contact me at tom@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 Thursday, 13 August 2009 | Digg This Article | Source: GoldSeek.com
