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TFC Commodity Trading Forum

Dec Gold/Approaching Resistance *PIC*

Dec Gold broke out above its one year downtrendline and after a classic tight patterned pullback to that line has rallied sharply. Price is now approaching the Fib 61.8% retracment level of the Sept/11 to May/12 selloff that Gold tends to respect. There is also important price resistance at $1800 just above as well. Also note the RSI 21 above the 70 line and see previous times this has occurred & what happened after. And on the short term note the loss of momentum on the CCI 20 that is showing a very negative divergence on these new rally highs. Match the technicals up with the fundamentals being "everyone just knows" you should buy precious metals now with the recent QE announcement and one should be very cautious of long positions in this price area to $1800. The old adage being "If it's obvious it's obviously wrong" has always been critically important to keep in mind when trading & investing. Also note the extreme oversold condition of the U.S.$. And "everyone just knows" DX going to crash and burn now as well now. Don't bet your life on that either.