Weekly Volume Supports Gold’s Rally

10/29/2010 9:51 am EST

Focus: COMMODITIES

Thomas Aspray

, Professional Trader & Analyst

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Despite last week’s drop in December gold to the $1315 area, the weekly On-Balance Volume (OBV) continues to looks very strong after it broke out to the upside the week of September 25. The OBV has confirmed the new highs as our Fibonacci target at $1362 was hit with further targets at $1405. The upper weekly trend line is at $1500. The daily OBV has dropped below its weighted moving average (WMA) and violated its daily uptrend. This allows for a further correction with 38.2% support at $1300 and more important support in the $1275 area.

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

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