The big picture of the market is familiar: in the seven years to March 2008 the market surged from $255 to over a $1000, and surpassed the previous High of $873 established in early 1980.

Thereafter the market dithered around the $873 level, tried to fall back but was robustly supported.

WEEKLY CONT. CHART

The dithering around $873 created a continuation Head and Shoulders pattern which has completed in the last week.

The bulls are triumphant.

But how high can the market go for here?

DAILY DEC09 CHART
Note well the difference between targets …
… and resistances

First stop then for the bulls looks to be 1106. But if as we expect, the market goes higher there are other level to watch.

Yet, in the very short term ….

DAILY DEC09 CHART

It is worth noting that in the very short-term, the current price of December Gold is 1046.70 having peaked yesterday at 1062.70 – a faction above the Dec09 Prior High in March 2008 of 1060.00.

(We are currently Long Gold in our Key Trades portfolio and will be following the market closely.)

Mark Sturdy
Philip Allwright

Seven Days Ahead
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Mark Sturdy, John Lewis & Philip Allwright, write exclusively for Seven Days Ahead a regulated financial advisor selling professional-level technical and macro analysis and high-performing trade recommendations with detailed risk control for banks, hedge funds, and expert private investors around the world. Check out our subscriptions.

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