[Ddukic]

Gold 13/09/2012 - 4h Chart Technical Analysis

COMMENTS: There is a definite correlation between the stock, derivatives, commodities, currencies and Gold markets. I am trying to detect the evolution of the Gold chart. The economic repercussions of the up or down of Gold’s price are beyond my, even, advanced knowledge of implicative finance. So, I never dare to interpret these moves. Let us return to the chart. Today, I added a RSI of 14 periods on Close. The price is hovers at the 4,25 Fib grade having already created a “0-1-2 Elliott Waves” set up. The RSI is turned down since the 23rd of August 2012 creating a “divergence” with the price’s up move. This is a classical example of the “pull up” of the price by the sellers. Always remember that a price moves, either pushed/pulled by the buyers, or, pulled/pushed by the sellers. WE should see very soon a correction on the price of Gold. Would that mean that traders will present an increased appetite for more risky financial instruments? We will see. In the meantime, please note my

SUGGESTIONS: Pivot for new both direction positions. Stop loss levels the affordable distance=cost from the pivot. Obviously, the long, already, running positions start defending their profits, either, by reducing exposures, or, by closing positions. Don’t forget that Waves exhausted on a 4,25 Fib grade may present corrections all the way back to the basis of the main 3rd Elliott Wave, in our case, 1.599,43USD.