Technicals | Oct 19 2010
By Rudi Filapek-Vandyck
The TechWizard reports gold is likely to continue struggling in the short term, increasing the odds for a corrective pull back. Such a correction would be but a healthy development, suggests the Wizard, as it will provide the market with renewed impetus to stage another leg to this year's strong rally.
The Wizard thinks the price of gold could well approach, or even exceed, US$1500 by the time this rally reaches its saturation point. But first it would seem that a correction is the route of least resistance in the short term.
The Wizard points out support for gold, at US$1300/1330, sits in between the 25% and 38.2% retracement levels.
The TechWizard is the pseudonym of Scott Morrison, whose experience in financial markets exceeds twenty years. Morrison operates his own website nowadays at www.techwizard.com.au The views expressed above are the Wizard's, not FNArena's (see our disclaimer).
