What's up with gold.

Something happen with gold :)
Besides fundamentals, which I believe are very important, let's see the technical situation.

Weekly :

Blue lines shows a triangle, that was broken week or so ago. The brown lines show rising channel, which we will show on daily chart.

Pink lines show the bottom of the 2006 correction and the top of 2008, when gold hits ~ $1,040. The 2006 high ($740) is exactly at Fibonaci level of 38.2%. There is no other significant supports / resistances at other Fibo levels.

Daily, horizontal supports:
I usually do not pay that much attention to horizontal support / resistance levels. However, gold just *broke* the previous high from OCT.2008 (tested week ago too). Obviusly, the high from DEC.2008 and JAN.2009 - ~ $890 working as a support, and was already tested 2-3 times.

Now, the daily chart. We have rising channel. Brown and Pink lines shows different way we can "construct" the channel.

Brown lines have more connecting "dots". If this is the correct way, then the channel is not yet broken.

If Pink lines describing the channel, then channel is broken, and we will see *sharp raise* in gold prices next couple of days.

Because we spoke purely technically, there is third very very low possibility - *bearish* one. Upper line is the Pink one, and bottom line is the Brown one. In such case we have *rising bearish wedge* with target middle $600's. However I do not believe so, also the wedge is *broken* on the "wrong" side already.
Conclusion: Gold raise is due ;)
Got gold?

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