Oil & Gold, Technicals
Oil and Gold Rallies Stalling
Tuesday, 10 Nov 2009 6:01 EST at 18:01 by Jamie Saettele · Leave a Comment
Crude
Crude oil broke above a double top in mid October but has failed to extend its rally after finding resistance from a fromer 4th wave near 80. Still, the series of higher highs and higher lows is bullish until broken (although RSI divergence warns of a high). 74.00 is potential support. The top of a channel intersects with a measured level at 92.57 in early December.
Gold
Gold continues to soar following the triangle break in August. However, there are plenty of warning signs that at least a setback is due. 5 waves up from 931.30, divergence with RSI, and the fact that the rally has reached several common measurements (including wave v of the rally being equal to 61.8% of waves i-iii). Bottom line – respect any weakness.
