Saturday, February 5, 2011

Resistance at Important Fibonacci Retracement

!! Gold (XAU/USD) !!

- Gold bulls have been in control the last 2 weeks, bringing gold from
1309 to 1359.

- This completes an abc correction with equality waves in a and c.
This is also right under the 61.8% retracement level.

- Here, the latest (12:00PMET) 4H candle shows strong rejection from
attempting to break above 1360. If the market breaks below 1340, we
are likely vacant to test 1323. If the market breaks below 1323, we
are heading back to 1309.

- Below this 1309 support, we have the 50% retracement level in sight
as seen in the daily chart, which is the 1295 level.

!! Silver (XAG/USD) !!

- Silver is in a very similar circumstances to gold's. It has
retraced just under 61.8% as the market tested 29.30.

- The bearish outlook needs to see the market break below 27.60. A
break below 28.00 might suffice as an ahead of schedule signal if the
market shows very large bearish candles. The target on the downside is
first 26.50 area. If the market then breaks below 126.40, the 125.00
level is in sight.


No comments: