Gold retreats – but is finding support

After following the tramlines lower, gold is attempting to stage a rally. But the charts are showing tough resistance ahead, says John C Burford - can gold power through?

Once again this morning, I am faced with several alternative markets to cover the euro, the Dow and gold are all shaping up nicely along their tramlines, Fibonacci levels and Elliott waves.And our occasional friend the Aussie dollar is doing likewise.

But gold looks particularly interesting to me this morning so gold it is.

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Contracts of 100 Troy ouncesRow 0 - Cell 1 Row 0 - Cell 2 Row 0 - Cell 3 Open interest: 484,359
Commitments
247,40135,45232,187131,714398,702411,302466,34173,05718,018
Changes from 10/02/12 (Change in open interest: 3,451)
7,9674,3445,460-4,536-6,8188,8912,986-5,440465
Percent of open in terest for each category of traders
51.17.36.627.282.384.996.315.13.7
Number of traders in each category (Total traders: 354)
22359684744295155Row 8 - Cell 7 Row 8 - Cell 8

John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.