Sunday, January 28, 2007

Gold is approaching resistance..



Gold did bottom in the 600 - 610 area and rallied just shy of 655 resistance (underlined in the previous post) where it bounced back. The 655 - 660 area is a strong resistance around the last Fibonacci retracement level (61.8%) of the 729.70 - 543.20 corrective trip. The COT numbers show levels very close to previous tops located in the (-115K, - 130K) interval, suggesting that Gold might stumble over the mentioned resistance area and head back towards 600's support, enforcing the range-driven market. If the 655-660 resistance area gives way, the next resistance level should be around 675 (around a previous top).

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