width=598

(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; 50-period simple moving average in light blue.)

9/18/2009 - Gold - Price action on Gold, a daily chart of which is shown, after just breaking out above the previous 1006 resistance high and hitting a new high near 1024 this week, has dipped back down to the level of breakout. This price action occurs within the context of both a long-term uptrend as well as a steep short-term uptrend extending from the beginning of September. At the current juncture, momentum indicators are showing price to be severely overbought and beginning to point back down. Any substantial break back down below both the 1006 level and the noted short-term uptrend support line should confirm a clear loss of short-term bullish momentum. In this event, a key further support target to the downside resides in the 970 price region.

James Chen, CMT
Chief Technical Strategist
FX Solutions

IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.