Gold's Long-Term Analysis Still Positive
10/04/2010 10:04 am EST
For many years, I have commented on the monthly on-balance volume (OBV) analysis for gold as its ability to confirm new highs has continued to keep the major trend positive. With last month’s close, the OBV is again at new highs, but the rising wedge on the monthly chart bears close watching. The breakout last month in the December contract creates key support now at $1256. We have had upside Fibonacci targets at $1352-$1362 for several years and there are also projection targets on the December contract at $1382 and $1402. The sharp intraday drop last week likely cleared out some weak longs.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.