Gold - Up $7 at $434.70
Technical observations of RossClark@shaw.ca
CHARTWORKS - FEBRUARY
posted February 24, 2005
Following the capitulation readings
in Gold on February 7th ($412.70), I anticipated an initial rally
into the $430 to $435 range. With today's decline in the US Dollar,
the price of gold has jumped by $7 to $434.70. I am making a
small adjustment to the initial targets. Based upon the similar
trading patterns that I am tracking, I believe that the high
close for this part of the move could be a shade higher; around
$437 +/- $2.
The next decline should be
minimal at around 3% to 5% below the high price. From a quantitative
perspective, there are two technical readings I would like to
see. Firstly, the RSI(14) is currently at 65 and I would view
the first 11 to 14 point decline in the index as an opportunity
to buy on a dip. Secondly, the low of the correction should coincide
with a CCI(8) reading at -100.
Going the other way, the dollar
index is approaching good support.
CHARTWORKS - FEBRUARY 22, 2005
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