GOLD: Weakens, Pressured To The Downside (Commodity Technical Outlook)

Nov. 21, 2011 5:39 AM ET
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Contributor Since 2009

Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times,Thestreet.com and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.
GOLD: With Gold reversing its previous week gains to close lower the past week and following through lower in early trading today, risk of further declines in the new week cannot be ruled out.This will leave Gold aiming at its Nov 01’2011 low at 1,680.75 where a violation will call for a move lower towards the 1,595.75 level and then the 1,532.90 level, its Sept’2011 low. Its daily RSI is bearish and pointing lower suggesting further weakness. Alternatively, the commodity will have to climb above the 1,802.75 level to set the stage for more strength towards the 1,827.85 level, its Sept 19’2011 high. Further out, resistance comes in at the 1,862 level. All in all, Gold remains biased to the upside in the short term but faces corrective weakness.
 
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