GOLD : BARGAIN HUNTERS ADRENALIN RUSH

By Shufaad, 25 September, 2011

Good day traders!

Lets look at our daily gold chart:

Gold Daily

Technically;

1. I drew a fibonacci retracement level from point A dated 1 July 2011 till point B dated 6 Sept 2011.
2. After registering the lowest level since August at $1628, price rebounded nicely at our 61.8% fibonacci level at $1647 and close the week at $1656.
3. From the daily perspective, nearest resistances are found at 8 Aug 2011 gap at $1682 and psycho level $1700. The said psycho level is decisive since it is leveled with our fibo level 50.0%. Breaking that level would push the price towards $1750/52 zone (fibo level 38.2%), strong psycho at $1800 and fibo level 23.6% at $1816.

4. 

   Gold H1

5. I would strongly stress here that both psycho level $1700 and $1800 plays a major role in the traders sentiment versus bargain hunting appetite.
6. Going south, Friday’s low at $1628 should provide the first support before a marching towards another psycho level at $1600. Further down, $1577 and $1550 should provide the needed support.
7. Gold is still in long term trend with the trend line drawn from 28 Jan 2011 is still much attach.
8. While the twist program seem to lure some traders to sell 0ff their gold, I’m looking at it as a short term correction. With the recent lower price, gold bargain hunters are looking ready to steps in.

While I’m bias to the upside, a potential drop towards $1600 is possible and I expect a mighty bounce from the said level.

Happy Piping!

Shufaad

+60166447174

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