Wednesday, December 05, 2007

Gold

Commodities are at an interesting juncture. Threats of inflation (bullish for gold) are offset by falling economic demand (bearish for oil and industrial metals). Certainly the August-November run-up needs some time to absorb the gains. Given the two forces at play the likely outcome is to see some scrappy sideways action running between November highs/lows. I will be looking at stochastic mid-line support [39,1] as key; a break of this level would likely see a new November price low (and a new low for sideways channel).

 
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