   |
|||
Gold marches higher into March ...Clif Droke
snippet Below is an extract from Clif Droke's Gold Strategies Review for Mar 2005
Now as you can see in the above daily chart of spot gold, the yellow metal is back above its 10-week, 20-week, and 30-week moving averages. The upward curve of the parabolic bowl structure in this chart reflects the increasing rate of change in momentum, which is what should give rise to the re-test of the $445-$450 area in the immediate-term. A concern, however, is that the 10-week MA is still downward-tilting, which suggests that a battle with resistance lies ahead as gold moves above $440 and closer to the $445-$450 target area. Also of concern is the fact that gold's 10-week correction bottom at $410 was to the right-of-center of the mid-point, or "vertex," of the parabolic bowl. This again could mean that the parabola will "expire" once gold reaches the target area. We'll know more as the target is reached and I'll update this situation in next week's mid-month update. Now what about the inverse indication of gold, the U.S. dollar index? Let's examine the latest daily chart of the dollar below.
The above chart shows the dollar
currently below its 10/20/30-week moving averages with the 30-week
MA intersecting at 85.16 and the 20-week moving average at 83.40.
But the important indication for the near-term is the 10-week
MA. Although gold is currently below it, this MA is starting
to turn up. What I can envision for the dollar index is a re-test
of the recent pivotal low at the 80.50-81.50 area. If this benchmark
zone holds up as support it will signal a resumption of the trading
range environment that I wrote about in last month's newsletter.
In other words, we'll need to carefully monitor the $450-$465
area in gold as a potential strong resistance and the 80.50-81.50
area as a potential strong support in the dollar. ... --Clif Droke 321gold Inc |
