("CHARTING MARKETS: Gold On Track To $1,100-Plus Targets," published Tuesday, Nov. 3, at 2:40 p.m. EST, included an erroneous support level. The corrected version follows.)
By Stephen Cox, CMT
A DOW JONES NEWSWIRES COLUMN
NEW YORK (Dow Jones)--Comex gold is that freight train that traders say you should never try to kiss. The December contract is as of this writing nearly $31 an ounce higher on the day, having earlier risen to futures` current all-time high of $1,087.30 an ounce.
The established bull market means that I conversely will now be looking for potential tops. I believe I`ve found a potential bull trap - at least what I`m looking at is a potential profit-taking point.
First, I won`t kiss. I`ll only tell you what I wrote in this column on Monday: the nearby Comex contract may test $1,165.20 target resistance by the end of this year, although such a move would of course depend on the speed of the uptrend, which is strictly an imponderable now. Alternatively, the nearby contract might test an interim top at $1,098.40 next year, and decisive trading above $1,098.40 might not end before $1,197.50.
If gold`s impressive bull market is going to go off the rails, then I believe it will happen when $1,113.20 resistance is tested.
The nearest stop for long-term traders is $1,066.10 support.
-By Stephen Cox, Dow Jones Newswires; 212-416-2212; stephen.cox@dowjones.com
(Stephen Cox, a chartered market technician, is chief technician for Dow Jones Newswires.)
(Data by CQG)
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(END) Dow Jones Newswires
November 04, 2009 10:52 ET (15:52 GMT)
