Here Is What To Look For Next On Gold, Silver & Oil
October 16, 2012
Tom Fitzpatrick has just released an update on both the gold and crude oil markets. Fitzpatrick has been astonishingly accurate in forecasting the movements of gold and silver. Keep in mind that Fitzpatrick had been calling for gold to correct after hitting the $1,791 level that he predicted would act as resistance. Now he lets KWN readers globally know what to expect next since gold has weakened. Remember, silver should trade with gold.
Here is what top Citi analyst Fitzpatrick had to say in his latest report, along with some powerful charts: Gold saw three weeks of indecision just below the important double bottom neckline at $1,790. These indecision weeks were followed by a down week last week suggesting short term losses now. Weekly momentum is also stretched and crossing back down.
A correction down to $1,661-$1,669 could be the danger in the near term before renewed gains later. This is where the 55 week moving average and 50% retracement of the last rally converge. Short term support is at $1,736 and it should be noted that the 200 day moving average comes in at $1,660, i.e. it converges with the 55 week moving average so should provide good support if/when tested.