So far the new year’s been golden, having seen gold rise 3.72% for the
week, and back solidly above the $1,100 level. I expected the $1,075 level to
be the, or near the bottom and that’s what happened luckily. While I’d love to
say gold will continue higher in the same fashion as the past week, I can’t. I
have to be a realist, but that doesn’t mean I am at all bearish gold. In fact it’s
times like these that I really enjoy since it gives new and old investors alike the
chance to get into gold without much volatility.
RSI is moving up and after having bottomed just below the 40 level has
moved up to nearly 56. The moving averages remain positive but more
importantly the gold price has moved above the 50 day moving average again.
The Fibonacci Retracement levels I drew in are significant at this juncture.
I expect to see gold move up and down between the $1,131 and $1,168 levels

roughly for the next month or so. It would be very constructive to see the
moving averages catch up to price a bit more and the scenario laid out above
would accomodate that.
MACD is now showing a buy signal as well as the Slow STO which is quite
overbought. While I mentioned the range trade I expect above, seeing the Slow
STO as it is I add the caveat that a move lower to test $1,100 is likely before
moving into the range I mentioned. But don’t fret, it’s all good

http://www.preciousmetalstockreview.com/downloads/January%209,%202010%20pdf.pdf