Spot gold rallied late Friday, breaking the first line of resistance at $1600/ounce. Penetration of the declining trendline suggests that the down-trend is weakening, but 63-day Twiggs Momentum remains firmly below zero. Retracement that respects new support at $1600 would strengthen the bull signal, however, as would recovery of Momentum above zero.
* Target calculation: 1500 – ( 1800 – 1500 ) = 1200
Hi Colin,
You might need to move that trend line up to the top of Friday’s rally and work from there if the depression in Indian and Chinese buying is anything to go on. It makes no difference to the trend line’s validity and probably accounts for the TWO negativity,no?
Wombat
Colin’s T-line appears correct, only time will tell if Fridays big push is merely a random spike (fake-out to the up-side) or whether the primary down is broken and we start heading towards the out of this world predictions of the doom-sayers to see gold break $2,000 $5,000 or something in between? We leave it in the hands of the “Highly Intelligent” few in the finance industry & the “Rational Markets”. (Yes I am kidding; trade well & enjoy the opportunities of volatility).