Intermediate Outlook for Gold
08/23/2010 9:57 am EST
Gold briefly violated the lower boundaries of its weekly trading channel before rebounding sharply. I expected the technical weakness noted in late June to result in a sharper correction and possibly a test of the 1100 area. Gold has held up much better and the weekly OBV, which did not confirm the prior highs, has now moved back above its WMA. A higher close is needed this week to confirm the positive volume action, so any pullback this week needs to be brief. Fibonacci targets are at 1362-1407.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.