Wesley Chapel, Florida, January 26, 2009 —Gold futures for February delivery (GC G9) on Monday notched a fresh 3.5-month high well above $900.00 an ounce as the bulls have recently gained strong upside near-term technical momentum.
Since January 15, the precious yellow metal has rallied around $100.00 an ounce. February gold prices are presently in a three-month-old uptrend on the daily bar chart and also just recently negated a longer-term price downtrend line drawn from the summertime and autumn highs.
The next upside technical objective for the charged up gold market bulls is to produce a close above chart resistance the October high of $938.80. Above that lies strong technical resistance at the July high of $1,004.10 an ounce, basis February futures.
Near-term technical support is located at the December high of $892.00, at Monday’s low of $889.00 and then at $875.00. Below that lies stronger chart support at $850 and then at the $835.00 area.
Look for gold futures to continue to be influenced by the value of the U.S. dollar against the other major currencies in the coming weeks and months. This key “outside market” for gold (as well as other markets) is a good example of Intermarket analysis and its importance to market analysis and successful trading strategies.
The VantagePoint Intermarket Analysis trading tool (www.TraderTech.com) also suggests more upside price pressure for February gold in the near term. VantagePoint is a valuable trading tool that employs “Intermarket” analysis to forecast near-term price trends.
Source: VantagePoint Intermarket Analysis Software
See on the VantagePoint daily bar chart for February gold that the Predicted Medium Term Crossover study shows the blue predicted 4 day exponential moving average is above the actual black 10 day simple moving average close, which is a near-term bullish signal.
The Predicted Medium Term Crossover is the predicted 4 day exponential moving average of typical prices two days ahead crosses above or below the actual 10 day simple moving average close.
Also note on the daily chart for March soybeans that VantagePoint’s Predicted Neural Index (PIndex) is presently reading 1.00, also suggesting upside price pressure in the near term. When the predicted simple three-day moving average value of typical prices is greater than today’s actual three-day moving average value, the Predicted Neural Index is “1.00,” indicating that the market is expected to move higher over the next two days. When the predicted simple three-day moving average value of typical prices is less than today’s actual three-day moving average value, the Predicted Neural Index is “0.00,” indicating the market is expected to move lower over the next two days. The PIndex is a proprietary indicator that predicts whether or not a three-day simple moving average of the typical price will be higher or lower two days in the future than it is today. The Predicted Neural Index compares two three-day moving averages to one another – today’s actual three-day moving average with a predicted three-day moving average.
To see more FREE recent market predictions for gold go here!
