-- Posted Tuesday, 18 February 2003 | Digg This Article

©2003 Publishing Concepts

February 18, 2003

April Gold has retraced roughly 50% of its previous 2-month gains with prices now hovering just above $350, a balancing level in the daily chart. The $350 area is pivotal as the chart below shows, and gold cannot afford to slip much beneath this important level.

The latest parabolic bowl in the gold futures chart allows for gold to decline a bit further down to $345-$346 at the lowest before the bowl is violated and gold overshoots the 50% retracement area by a significant amount. For gold to stay technically healthy it should stay above $345 at the lowest and preferably find solid support above $350. Breaking the bottom of the bowl at $345 would pave the way for a further decline down to around the $330 pivotal area.

Immediate overhead resistance in the April Gold contract for Tuesday is approximately the $354 level, where an 8-day downtrend line intersects in the tick chart. If gold makes it above $354 there is upside potential to the $360 level, which is the next closest chart pivot and also a downtrend line intersection (see above chart).

--Clif Droke

New book from Clif Droke Gold Stock Trader's Almanac 2003 $24.95 You might also be interested in subscribing to Clif's monthly Gold Strategies Review. The February 2003 issue is the current issue - $21 click here.

-- Posted Tuesday, 18 February 2003 | Digg This Article

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