Friday, 27 April 2012

Gold....Has this market turned? EP M12...Objective reached

Recent price action in Gold suggests we may have seen the short term lows and we are heading back towards 1670-1680$. This is based upon repeated sharp tests to the downside and firm support seen at 1620 plus a higher low at 1624 on 25th April. We are clearly going to break out of the current green d/sloping fork( black in the MT4 chart) after repeated tests on the upper MLP (MLH) and a pair of down sloping reaction lines that have channelled price lower after/since the first attempt to break up through the line yesterday..

Finally the S&P has reached it's objective in what must be one of the most unusual patterns within a fork body i have seen for some time. See the black up sloping fork where price is currently at the centre line and see the journey it has taken over the last few weeks. A brief pause perhaps & although i am still not 100% sure of the downside risk i think this market is going higher and fast. Spend 20 mins on a daily and wekly chart and you can see  there are no downsloping forks that can be drawn off the big pivots from the last few years. My guesstimate is that we will attempt to take out 1418 within days/weeks.....and all this from an eternal Bear

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