Friday, April 3, 2009

Gold At A Crossroads


A move below the March lows in gold will not automatically confirm a change to a downtrend but it will go a long way. A two day pullback followed by a break of the resulting pivot, or a sharp move below 850 will confirm it. If the downtrend is confirmed, a retest of the 700 level would be expected.

The indexes continue to march higher with a smaller degree 5 wave impulse from the 3/30 low almost complete. This should lead to a pullback or consolidation that holds above the 3/30 low. An alternate view would have the indexes retesting that low slightly. Either way, the pullback should be an opportunity to add to existing or new long positions.
Alcoa has completed a nice 5 wave movement. Wait for a pullback to consider an entry with upside targets between 12 and 15.

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