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Gold could re-test $880
Joe Meyer
Posted: Wed, 15 Oct 2008
[miningmx.com] -- THE gold price could again test resistance at $880 and if it breaks through there could move sharply higher. If it breaks through $820 on the downside, then $800 or even lower could be the target.
We show a dollar gold daily chart with an overbought/oversold Stochastic indicator at the top.
Click on image to enlarge
Gold is currently oscillating around
the 200-day moving average (see line 1) after reaching resistance at $900 (see line 3).
It is most likely that the current pullback will continue until it reaches lower support around $820.
This is a projection low (see line 4) that falls on support (see line 2).
From here we should get an advance to again test resistance at $880. A break through this level should see gold set to test the all time high.
Alternatively, a decline to below $820 will negate this bullish view and we will see a test of lower support at $800 and even lower.
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