Partners

21st October Gold Trend Analysis

In last nights website update resistance was listed at 1639-1649 and the high so far today is 1648. Support was listed at 1607-1612 and the low so far today was 1611

Trades — I have no leverage positions in the market today.

The only news we see relavant today is the Europe Debt meetings this weekend and what could come out of the rescue plan they try and come up with. The latest news is there is a discussin of 1.3 trillion Euro proposal between the Finance ministers and what the implications are for gold. Merkel will give address on debt crisis to German Parliment on the 26th. So there is a 2nd meeting now set —- the 23rd and the 26th it now seems. It comes down to what Germany and France end up coming to terms with their disagreements.

Every morning corporate Risk Managment meeting is —- what is Europe doing today. As far as solutions —- the real issue is — Who — what —- where — how much ? It just opens up more questions. ECB needs to addresss Spain and Italy —- and how they will handle that oncoming debt issue.

Even more interesting is this post from Tyler Durden at zero hedge this morning.

Curious what the talking heads will be discussing all weekend parallel to the joke that is the European Summit #1, not to be confused with summit #666?Here is the answer, courtesy of the FT Deutschland, where not too subtly, rsaying “the Euro rescue has turned into a farce”, the publication has for the first time, set its price not in EUR but in Paul Tudor Jones’ favorite. And courtesy of the FTD, we now know the When Issued exchange rate for the EURDEM is: 1.95, the same as was locked at the EUR inception.

All in all its a typical Friday where rumors abound, short covering in the commodites rout from this week and a continued powerful move up in the DOW stock market……….which we pointed out at the LOWS in OCTOBER 1400 points ago that the 23 year trend line had been touched and that a move back up based on good earnings would be the “spin” to watch for. McDonalds, GE, and the big global giants are reporting higher earnings and sales ———— and the short boys are covering their positions this morning again.

THE STOCK MARKET can’ t be allowed to melt down — that is also TBTF —– and you can figure out for yourself who they are “protecting” from insolvency.

Going to the Charts

The bounce at the 144 day moving average at 1608 as listed on last nights website update turned out to be the low and the Wednesday night chart projections for 1600 and our Point E target played out very well. Last night we discussed max upside in the 1639-1649 area —– and todays highs at 1649 spot should be the upper end of that range. we showed the mini inverted head and shoulder pattern that suggested we could see this bounce today. In summary — the consolidation week in gold held the upper and lower end of the ranges —– and gold at the moment is not to far from where price ended last Friday.

The last few Friday’s had early highs —- and then seemed to fade as the day wear’s on. Should be interesting to see it that plays again today. The chart speaks for itself — the key resistance today at 50% fib retrace and the upper dotted trend line all have 1649 as the upper band of daily resistance. Pullbacks today show the 1629-1634 area as first support today in spot —and the PIVOT area of 1625 is also a key point to watch. ALL PRICE SPOT

Key this weekend will be Euro debt crisis. We’ll pick it back up next week. BOTTOM LINE — LOOK FOR A BAILOUT AGREEMENT TO BE HATCHED OUT — what other choice do they have ? NONE

FRANCAIS ESPANOL ITALIANO CHINESE

Search

Error: Feed has an error or is not valid


Thoughts
"For a mountaineer, the important things are the effort, the posture and the muscles. The rope that holds him serves no purpose when everything works but it gives him a sense of security. In the same way, all gold does is ensure confidence; it's a safe haven."