Wednesday, 16 January 2013

Gold.Still reaching for the centre median line objective at $1690-1695

 This is perhaps going to be the best indication of Golds future intentions and direction and it's strength. It currently is being held back by the thick black (or blue in one template below) historical ML ( CL) seen in the charts below but I suspect it may well try to reach higher. However we have seen the resistance at $1686 has so far held. Only a zoom through with the sort of outrageous long range bars/candles that are so common in this market would in my opinion do the job. This impetus may perhaps be provided by some fundamental news/shift in sentiment.We are told that there are large institutional sell orders at the $1685-90 level.
The converse of this supposition is true in-so-far-as if Gold fails to move higher it can't just sit here at these levels twiddling it's thumbs and must retrace perhaps back to the LMLP of the two forks in question around the $1660 level. ( previous links showing fork coordinates). 
One point to note is that price has passed through several reaction lines that have been driving it lower over the last week which can clearly be seen in the 3rd chart down. My bearish bias continues but I have become slightly uneasy at the inability to see a serious pop below $1650. Yes, I am impatient and like a small child who wants everything now and time is a critical factor in any market that is often overlooked/underestimated. The current bar count using my "Sweet Spot 106" reverse/forward count formula indicates that we are in zone for a new pivot/move either way today and tomorrow.

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