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Gold 18th January 2011

Just been reading a post on by David Levenstein, one of my preferred bloggers.

Gold S1 support is at $1325 (Gold has not dropped below this level since the rally started in August) and this also is the F2 (38.2%) Fibonnaci retracement level.

Fibonnaci retracements are another form of technical analysis in which the upwaves are followed by downward movements that can be measured by statistical calculations based on Fibonnaci numbers. It's just another stat that can suggest support levels....Don't take it as gold

Something IĀ forgot in my last post. For the last 2 years, gold has not dropped below its 34 Week Exponential Moving Average. This level currently stands at $1300.

In other words, if you are bullish on gold, the fundamentals don't change and gold drops to $1300.....BUY!!