Gold Reaches Next Resistance

09/22/2010 9:44 am EST

Focus: COMMODITIES

Thomas Aspray

, Professional Trader & Analyst

chart
Click to Enlarge

As gold has rallied about $50 in just over a week, there seems to be few, if any, analysts who are not bullish. Though this is a seasonally strong time period for gold, this bullishness makes me a bit nervous. On Tuesday, December gold tested the 127.2% Fibonacci target from the December 2009 - February 2010 correction along with trend line resistance before reversing to close lower. I still have longer-term Fibonacci targets in the $1352-$1362 area. The 20-day exponential moving average (EMA), which is often used by traders, is in the $1255 area. There is much stronger support in the $1225-$1240 area.

Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.

  By clicking submit, you agree to our privacy policy & terms of service.

Related Articles on COMMODITIES