Gold Technical Analysis Update ~ market folly

Tuesday, September 8, 2009

Gold Technical Analysis Update

Here's a new gold technical analysis video that updates the market outlook. Gold has been in massive uptrend over the past 8 years where it has started to encounter resistance from 2008 until now around the $1000 range. And as of right now, it has hit $1005. We've touched on this before, highlighting that gold has both a psychological and technical resistance area there which it has now overcome. Technical analysis typically dictates that when a certain level is tested on the chart over and over, the more likely it becomes that the level will be broken the next time around. And, that's just what happened. What is key now is if can remain above that level as it will inevitably test it again to verify that past resistance has become future support.

The guys at MarketClub are targeting a price of $1200 for gold based on what the technicals are saying. While the market has been building momentum and they point out the MACD turning up, they are questioning what the catalyst will be in order to send gold truly skyrocketing. But, for the mean time, gold has at least crossed the barrier. You can watch the video on gold here.

(click to enlarge)

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