Gold Dailywatch – Wednesday 24/6/2009
Posted June 25, 2009on:
Gold opened at 928.00/929.00 and dipped as the session began to an intraday low of 927.50/928.50. Durable goods surpassed expectations causing equity markets to rally and gold followed. The metal continued to be well bid, triggering stops, climbing to a high of 943.75/944.75. It quickly pulled back from its highs and traded lightly within a range as investors stepped away from the market. A stronger USD inspired some profit taking as the trading day approached the close, finally settling at 933.75/934.75. The Fed rate decision was unchanged as expected, having minimal impact on gold.
Gold broke the 100 day moving average at 927 with gusto today trading as high as 940. The current 931 shows as an ‘up day’ and thus confirms the technical reversal warning we saw yesterday by the large ‘hammer’ formation. The fact the unit met our 913 fibo target yesterday gives added confidence that the metal may have “hammered out its lows” to the downside. As a technical trade we would buy Gold here, looking for initial move to 944 the mid June congestion, with our stop below 927.
Pivot – 929.20
Primary Support (Buy) – 916.39
Primary Resistance (Sell) – 945.16