Monday, August 22, 2011


The article is written by a friend of mine, Mr Shufaad, from

Original source written on early morning of 23/8/2011.

Good day traders!

Gold highest price now is $1911.86.

Nearest resistance is $1925, then $1950.

Technically, there’s going to be a correction as nearly all technical indicators are overbought.

Daily RSI has reached 84.4 level, the highest level I’ve seen. Extremely Overbought.

Daily Stochastic is at 96. Extremely overbought.

Daily ADX is at 77. Too much Extremely strong trend.

MACD is interesting. Its Hourly study shows a Divergence while its Daily study shows parabolic (see red line i price and MACD). This is an indication of a correction might happen.

Gold Divergence

Supports are found at $1877, $1857, $1836 and ultimately our psycho level at $1800.

Correction is what gold needed to move upwards and continue its long term bull.

In short and near term,I remain bias to the downside.

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