GOLD Commodity Market Outlook 02-16-10

Commence with th gratitude to The Ultimate Knower, for the Knowledge.

I shall reveal one of the techniques, that I use to analyze the markets, and use the same to analyze the Gold commodity market, here. Some very successful traders, use 3-Day chart with close only prices. The main advantage of this techniques is that said technique reduces and takes out the “noise” from the price action of a certain equity or commodity. On Feb 5th, Gold (and other commodities) made a new lower low and bounced back up from said low. When gold made a low on said time and price, it found a support from an upward trend-line originated from the Gold’s low in November 08. The time of said low is very important, for several equities, futures and currencies markets, as it was the lowest low made during this bear market, which started in Oct 07 for financial markets and Summer 08 for the futures and currencies markets.  Furthermore, as I stated in my earlier post that Gold also broke above the downward trend-line, which started from its all time high of Dec 04, 2009. Based upon this chart, and other posted this morning, gold is approaching its first resistance.