Gold rallies to important resistance levels

Gold's rally has hit some resistance, and the odds are stacking up that the we have seen a top for now, says John C Burford. Here, he looks at how to play the next phase of the gold market.

In my last article on gold, I had pencilled in my Elliott wave count on the decline from the 13 November high at a little under $1,800 an ounce, to the recent $1,670 low.

I labelled that low as my wave 3. A wave 4 rally then followed. I was looking for a drop from there into wave 5.

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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.