Gold Marketwatch – Friday 05/06/2009
Posted June 8, 2009on:
Gold opened near its highs at 979.00/980.00 and rose briefly to 984.00 after the release of a much better then expected non farm number ( -345 versus expectations of -520 ). Fund selling, in reaction to a stronger dollar, soon came into the mkt taking us down to the 965.00 area where good physical buying interest was seen. Continued fund selling eventually took us to a low of 954.00/955.00 and we spent the rest of the morning range trading. We managed to trade briefly back above 965.00 in the afternoon but further strength in the dollar prompted selling taking us to a close of 961.25/962.25.
Gold has broken a string of four UP weeks with current weekly candle showing a bearish inverted hammer off the 990 high. The current level of 955 is below a previous impulse high pivot of 961. Last week’s low at 941 becomes next stop loss trigger. We turned neutral this week when the unit broke back below 970. We will shift bearish on a close below 941, looking for and initial move to 912. The inability to retest the 1006 is a major concern for long term bulls.
Pivot – 976.73
Primary Support (Buy) – 963.45
Primary Resistance (Sell) – 992.67