Tuesday, February 22, 2011

Gold Breaks Again

It is moving fast now.  Gold is being manipulated through its support levels and breaking its resistance levels in the same day!  I had resistance at $1403 today, and it just broke it.

Gold, as any trade, always has a support level, and a resistance level.  There are sometimes more than one near term, and there are many support and resistance on the chart.  For example, platinum could
break to $2200 and not affect any other trade.  $2200 is its recent high, and the economy could handle the price action.  Another example is that the dollar could move to 66.  Any lower than 66 and the wheels fall off of its reserve status, because it would not have enough value to support the system.

So with $1403 broken, and it being a day after a successful break past $1400, I see only an open road ahead for gold.  I think that it gets to $1440 within this wee, and a successful break out to $1650 comes soon after.  We most likely will pause at $1440, as some day traders take profit, but it will be $1650 by the Spring solstice.

No comments:

Post a Comment