Gold may be a critical juncture (ZeroHedge)

I have taken the sell side of this trade.  I believe Gold will break through to US$1090 - and I could be wrong.  The US$ is on a tear, and Gold should suffer?  Oh wait that is just another one of those correlations.  The 1094 support might hold.  Watch and Learn.  Watch and Learn.


EDIT-UPDATE-stopped out @ $1100.40, grrr!  Watch and Learn.  Watch and Learn.

Gold On Support

Submitted by Tyler Durden on 03/22/2010 06:16 -0700

• Nic Lenoir
 
• Price Action
 

Submitted by Nic Lenoir Of ICAP

Gold is back on support here. On the 60-minute chart we are right on the neckline og a H&S pattern, and we see and the daily chart that despite a slight excess, we are roughly holding the support of the bullish channel. If we break here we should go down to test 1,090/1,075 which is the key support here below. Failure to hold that support would indicate we will go down to test 990/1,110 which the the key medium tem support, a break of which would send us down to 750. Conversely if we do hold here we should recover to 1,165, and should we break this resistance the market will rally towards new highs. As the price action is very confused, expectedly so since we are probably still in a consolidation wave 4, we would recommend making the most of short-term momentum and price patterns and keep exposure light until the market confirms a break one way or the other.

Good luck trading,

Nic  

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