VIEWS: 18 PAGES: 1 CATEGORY: Options & Derivatives POSTED ON: 10/24/2011
GOLD: With a reversal of its previous week gains seen the past week, Gold looks vulnerable in the new week suggesting a follow through lower on the back of bear threats.
GOLD: Takes Back Gains, Vulnerable To The Downside Towards 1,595.75. GOLD: With a reversal of its previous week gains seen the past week, Gold looks vulnerable in the new week suggesting a follow through lower on the back of bear threats. That vulnerability could see the commodity weakening further towards the 1,595.75 level, Oct 04’2011 low where a violation will aim at the 1,532.90 level, its Sept’2011 low. Below here will resume its weakness towards the 1.500.00 level, its psycho level ahead of its July 01’2011 low at 1,478.05. Its weekly RSI is bearish and pointing lower supporting this view. On the upside, to restart its corrective recovery, the commodity will have to return above the 1,693.95 level. This will open the door for further strength towards the 1,702.31 level, its Aug 25’2011 low. We expect this level to reverse roles and provide resistance thus turning the commodity back down. However, if taken out, further recovery strength should build up towards the 1,754.55 level, its Sept 23’2011 high. All in all, Gold maintains an immediate downside risk having halted its recovery tone.
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