Wednesday, February 15, 2006

Gold


Here is a line chart showing hourly closes in pit and electronic trading for April gold futures.

Most rallies in a downtrend are three stage affairs: two upward phases separated by a down movement. Right now it looks like we have seen only the first upward phase in gold so I think there is still a good chance that the market will make it up to 555 before dropping to the next support level near 526.

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