Gold Price: Support and Resistance

By Roger Baettig | October 08 2012 10:44 AM

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Gold: Support and Resistance

Gold continued higher Friday towards the upper line of Bollinger Bands as anticipated Thursday and now we can see how the distance between the lines of Bollinger are still tightening more suggesting potential price explosion.

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On the upside: breaching the psych mark at 1800.00 will bring additional Bullishness as in this case the overbought sign on RSI 14 will be ignored.

On the downside: 1763.00 is the clue for bars as a break of which will be a negative indication. To be prudent, on should not enter the market unless the precious Yellow metal takes one of those important boundaries out.

The trading range for today is expected among the Key support at 1736.00 and Key resistance now at 1850.00.

The short term trend is to the Northside targeting 1945.00 as far as areas of 1520.00 remain intact on a weekly closing.

Support: 1788.00, 1772.00, 1760.00, 1754.00, 1749.00

Resistance: 1795.00, 1800.00, 1805.00, 1815.00, 1825.00

Analyst Recommendation Based on the charts and explanations above my opinion is, stand aside until an actionable setup presents itself to pinpoint the upcoming big move.

Paul A. Ebeling, Jnr.Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.