The Commodity Specialist view – The recent breach of last December’s peak was brief, but the current chart structure does not indicate fatigue. Higher prices are likely before better resistance could be seen.
- GOLD (COMEX) WEEKLY CHART – CONTINUATION:
The 2010 upleg recently started to push beyond our earlier Fibo projection at 1220. The next projection on this chart is not far off at 1270 (but see also Daily chart).
Looking at the whole recovery from 2008 low it is possible that the current upleg (from 1045.20 Feb low) is a third/final upleg, i.e. a 5-wave structure is in the latter stages of formation. How strong this upleg is remains to be seen. - DAILY CHART – JUN-10:
After recent erosion of the previous 1230 peak a s/term slip back this month was not a surprise (type of key reversal day seen on 14-May).
At this stage the chart is well-placed to push higher, and we keep in mind the Fibo projection at 1344, the 1.618 swing projection of prior Dec/Feb downmove.
First support around the 1170.70 12-Apr high has now been tested – ideally this should hold, in order to preserve momentum. Thereafter the lower rising support line needs to hold to avoid sidelining the bulls.
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