Friday, 4 May 2012


Do you remember this view of Gold that i posted months ago? ( 2nd LINK) Ultimate target $1450 and I have remained my bearish position depsite some colleagues who have ridiculed this objective and market view (and of course contrary to the many market commentators who are eternal Gold bulls and are constantly given TV airtime). Certainly i think we will test $1573 this May. If you wish to consider a short position watch price action today as we retest then perhaps fail the green trigger line or the red reaction line seen here in the lower of the three charts. Of course we have bounced thrice off the 1612 & 1622 & 1625 level BUT yet price persistantly is coming back to test this area and fails to make a HH after each visit.A big  fundamental 'shock' today and over the weekend (Non-Farm PR's French elections/EZ worries/China/US data) would give the impetus to sail down through here with some long range bars. Of course we must also understand that price may fail again to break down through this support which case all bets are off and we could go higher (ie make a HH over 1670) but my money is still on the downside.Lastly below is another reaction/median line study of Gold (with all indicators removed or collapsed for greater clarity) showing a supporting RL from a high time frame weekly fork (thick brick red) and two ML's that bisect and constrain recent current price action.

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