Monday, December 28, 2009

GOLD - looks set for a bounce !

 
Attached find the gold chart.
 
I see 4 reasons to buy it at this time.
 
1) Falling trendline is arrested. Downside seems limited & uptrend may begin.
 
2) 61.8% retracement from the top is completed at 16600.
 
3) RSI - falling for sometime now is crossing over
 
4) Stochastics - D line is 28 which suggests more shorts then long - so is oversold.
 
Concludes to a reasonable bounce in near future.
 
Cheers,
PREMAL

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