knoxvault FMX | Connect – www.fmxconnect.com - (Reported 11/08/2011)

Gold Could Break Above 1800
















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Gold traded to 1799.90 in the overnight session, but don’t expect that high to last for long.

December Gold could rally above 1800, according to our latest Trend-Vol alert. Above, you can see a period of decreasing volatility and very tight Bollinger bands on the hourly chart. A break-out above 1800 or below 1786 would initiate a likely continuation in either direction with rallies reaching for 1850 and sell-offs looking to test support in the 1750 area. Readers of our daily options report should remember we noted the possibility of a profit-taking retracement in our technical report, and should look at this trend-vol indicator for additional confirmation.

 

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