Technicals Show Potential Pullback in Gold Prices
January 4th, 2011 Posted in Oil and Precious Metals, Technical Analysis
Russell Glaser
Name: Russell
Spot gold prices continue to climb but price stalled at a previous all-time high and the commodity looks to head lower.
Following a failed breach of the resistance level at $1423 the price of spot gold as moved lower.
Technicals on the daily chart point to a potential fall in the price of spot gold. Declining Momentum (7) will shortly provide a sell signal by dipping below the 100 level. Falling stochastics on the daily chart also support a decline in the price.
Support for the pair is found at the mid-December low at $1361 followed by the rising short term trend line off of the October and November lows.
Resistance is located at mid-December high at $1408, followed by the previous high at $1423, and finally at the all-time high at $1431.
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