Gold made a lifetime High of 19198 Rupees in the first week of June 2010 , And Formed a Doji at top of charts on weekly which is Sign of short term reversal
Looking Closely at weekly Charts it almost reversed From top end of the Channel in which it has been trending Since of February 2009
Gold Initially in mid month of Feb made a high of 16036 And corrected to 13931 in Next 10 Weeks giving a correction of approx 13 % . Later on bounced back to Make a New high at 17650 and Corrected to 15950 in next 10 weeks correcting almost 10 % , the correction period both the time Lasted for 10 weeks
Now at current levels it has again reversed From top end of same channel and expecting it to take Support at bottom End of Channel which is near 17200 levels and almost indicating that it could be a approx 10 % correction if it follows same time sequence of correcting approx 10 % in 10 weeks From top which it made First week of June and Than we could expect targets of 17200 lvls around second week of august
RSI on weekly charts has Also Reversed From overbought Zone and point downwards currently placed at 65 zone
Week end Feb 15 2009 12th April 2009
16036- -13931 net Change --- 2105 Rs == ~ 13 %
correction Time Period ~ 10 Weeks
weekend 29 nov 2009 31st January 2010
17650—15950 net Change = 1700 ~ 10 %
correction Time Period ~ 10 Weeks
Week ended 6th June 2010 - 19198 -- ????? Expected target 17200 lvls
19198—17000 net change 2198 ~~~ Approx 11.5 % correction Expected by August Second week
Gold GC Comex
Gold Comex made a life time high of 1265 $ which was end of 5th wave of Complete up move which Started From medium term Low of 1044 $ made in Mid may of 2010 . Now is start of 3 wave corrective pattern Which would Open Downside targets of wave a till 1165 $ and than probably bounce back till 1230 $ lvls Which could be Wave B and than Final wave C ending at 1121 $
Note both the above views would be Negated if Comex Gold Crosses 1265 $ in short term Or MCX gold Closes above 19000 Rupees
