Wednesday, June 24, 2009

Bullish Gold - Bearish Dollar Index

The past 18 months have seen building pressure on $1000 resistance in Gold with the dollar now struggling to regain anything like its early year momentum. The one glitch in the scenario was the break of rising support from November lows in Gold but this will probably amount to little more than a change in the rate of ascent. April lows of $869 should not be violated.


The dollar index 'looks' to want to retest 71.32 which will have a knock on effect for commodity prices, likely taking oil past the $70-74 band of resistance with the potential to push it into the low $100s (although it will take more than a weakening dollar to get it there).



Enter to win the Trader's Business Plan prize of a free psych test and free access to the trading plan development program. Retail value $398

[1] Register at Zignals.
[2] Go to Charts and select a stock (you will be prompted to download Microsoft Silverlight)
[3] Click on the YourCall Icon


[4] Enter a Call by giving a stop and target price; make sure the Time Period is set to Short (month)
[5] Enter as many calls as you like up until the end of June; these can be long or short signals
[6] Send me your Zignals Userid so I can track the calls made (declan-at-zignals.com) or post it in the comments section of this post. In your email make reference to the competition.
[7] The Zignals member with the stock giving the highest return from either a target hit or expiration after 22 trading days will win the prize. Only stocks or FX prices listed on Zignals qualify for entry (no pink sheet stocks). The announcement of the prize winner will be made at the end of July.

Good luck!

Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.

 
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