Technicals | Dec 15 2011
By Robert Clayton
What can be identified here?
Having become established at US$676 per ounce, gold has maintained a bull trend since October 2008. In recent sessions technical signals have turned negative, raising the question of whether the bullish trend is about to reverse.
What is the story so far?
The magnitude of the uptrend for gold since 2008 has been significant, given from a level below US$700 per ounce the metal recently recorded a high of US$1,920.56 per ounce.
Since the recent high the market has witnessed an aggressive pullback, but AliomFX suggests technically the risks remain on the downside. With oscillators slowly declining there appears little scope for a short-term recovery.
The market is currently focused on the three-year uptrend at US$1,550 per ounce. A close below this level would confirm a negative signal and likely prompt a significant down move in the view of AliomFX. A measured target is US$1,200-$1,250 per ounce.
Any fresh advances in gold from current levels would likely encounter supply towards the mid-US$1,700 per ounce region.
Robert C. Clayton, Technical Analyst • For further information please contact AliomFX 1300 885 686 or visit www.aliomfx.com.au • Chart source Meta Trader. Content included in this article is not by association necessarily the view of FNArena (see our disclaimer).
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