Gold bulls Remain in Strong Position

The Commodity Trader’s view - The price of Gold has recovered from a low point last October, and is currently knocking on the door of the next key resistance – a break higher would give the next bull signal, as well as strengthening the bull case for the medium term.

• WEEKLY CHART – CONTINUATION: Earlier on we had been suspicious of the overlapping/volatile price swings that made up the 2008 bear move. In the end they did indeed indicate a lack of impulsiveness on the bears’ part. Of course, we must still be prepared for further notable swings, but the medium term bias is more likely to be up now.
• DAILY CHART – APR-09: Bulls have now reached the next 76.4% level, which currently coincides with a falling resistance line, and Oct high – a s/term struggle to breach this is not a surprise. Any pullback at this stage will ideally not be of greater magnitude than the last 892.20-803.60 slip. In the end, bulls desire supports to be found at/above the previous rally high, to imply strength –at current prices it is uncertain whether the 892.20 Dec high can provide such support yet. A higher 76.4% level at 965.00 is deemed the more significant hurdle in the course to a retest/violation of last year’s peak.

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