Friday, May 6, 2011

Gold on 6-May-2011

Gold has extended its 4th day plunge and already trading at our main support of 1476.95 pts.

It has formed a bearish candle on weekly chart.

Intraday chart starts to show reversal pattern.
4 Hour - waiting for next bar to confirm.
1 Hour - reversal formed, but weak.
30 Min - reversal and oscillator telling us that the buying interest start to accumulate.

Gold Lowest 1462.70 pts.

Short Term Trend : Bearish = Favour Short.
Short at 1482 if Gold pull up to 1/3 from yesterday candle.
Target double bottom 1463.
Falling below this bottom will lead to 1450 - 1448!

Big picture (Day Chart) = Favour Long.
Since QE2 is going to last until June, more cash is going to trigger the devaluation of USD.
After this beautiful correction to 1460-1450 region, Gold shall continue to escalate!

I will hold my Long to wait for market to come to 1450.

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