Sunday, 26 August 2012

Gold..Beware of this move . Is it the real deal?

Anyone who follows my website( will know that this fork is the key to recent support.. infact you can see   price bounced along like on the head of a pin when you get down to 240 and 60 min TF's. The reaction lines are key and without them you really have no idea where price is going to find support and resistance. This is not to say that price is just being affected by one fork and anyone who follows this blog will have seen ample proof that price is affected by an unlimited number of forks/reaction lines at any one moment in time.

The pink/lilac reaction line is the 50% reaction line ( at 50% of the interval of the RLs') that should always be observed as there is often a reaction as can be seen here.but what I am watching now is price approaching the next red RL at what must be about 1680$. Once we see a break (zoom) up and through this line we know we are on our way back up but great care should be taken before this happens as we could fail and run out of steam and be pressured lower first.Below is a more detailed chart. See the subtle difference in line location in the 240min vs the daily.

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