Thursday, March 5, 2009

Cannot forget gold - here's a look at it testing support

Shouldn't be surprised that gold has dropped to test support, while the dollar has been proceeding up toward my 91 target, including a new high on 3/4 (as posted previously). The corollary would be that either gold gets support at the uptrending channel line and goes higher while the dollar falls off (or pulls back) ... or gold loses support and the dollar will march higher above 91. I'm thinking the former scenario - will see, because I'll be just as happy if gold gets to either the 1024 or 1192 levels we've discussed here in the past:


Not surprising the yen as shown on these daily and monthly charts of $XJY also testing key levels. On the monthly, it did fall under that long-term shallow trendline level, but on the daily you can also see that it's at the 200-day simple moving average. It can still be simply an Elliott Wave flat correction, retaining the potential to move up to new highs as discussed on the monthly chart. Still - IF it does lose the 200-day moving average, and under the level ~99, then we look at the big-picture Gartley objectives (if memory serves, the main one is 83, and we'll definitely detail those if $XJY doesn't get support at these levels):

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