Wednesday, 21 December 2011

Gold :Nice rally - it's a shame its over!

Gold has touched the underside of the LMLP of the black fork ( pivot value AB-D72.4) see below in small chart- which is also the .382 Fib RT of the recent move down. A very slight penetration of the line and with MACD and 2 X and B-line + short stochastic divergence in multiple time frames suggesting ( shouting) that this market is overbought. This, to me, is a classic bull trap entry. Sucked in on the back of this weeks recovery I guess many folks have thought that Gold looks cheap at 1640... I cant think of a worse place for a long entry. The most obvious centre line objective lies at 1660$ and we are still well short of it. A break over the recent high would still not excite me that much and only a break upto 1675 would make me question my bearish sentiment and outlook.

P0 is the high on 17 October or the prior high on the makes a tiny difference for the ML's but obviously the reaction lines are different for both pivots but they are not in action at the moment. The pivot fork value is higher for the 17th.This LMLP is green in the above MT charts.

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