Gold: Larger recovery in the making
Friday, 30 May 2008 08:56 am GMT
* Market commentary:
Spot Gold recovered quickly from 870 as expected. Spot gold could be in for a larger recovery. Expect spot gold to continue the rally.
* Technical analysis:
Spot Gold count suggests a wave 4 recovery to 888~890 region. RSI is about to test the top channel line. Expect the bullish mode to continue. RSI has validated a bullish divergence. Look for the recovery to continue
* Strategy:
1. Hold Long or go long at 875.
2. Stops < 870
3. Target 880 & 888
4. Use trail stops
* Trail stops:
1. Move stops to 875 on break above 880
2. Move stops to 878 on break above 883
3. Move stops to 883 on break above 886
4. Move stops to 886 on break above 888