Gold: another Wiley E. Coyote moment $GLD $GC_F

Wile_e_coyote_gravity

Gold has been following the behaviour of the general market, which points out another decoupling from a previous correlation (negative, in this case to the S&P500) during similar circumnstances. It finished the week -3.6%. Similary, the S&P500 finished the week 3.7% in the red.

The metal currently sits at an important level of support, followed by 1698-1708, and finally 1682-1692. If the latter is breached, most likely 1655-1660 might be in play, since the level of 1680-1655 is a thin area, which are ususally “revisited” in a following cycle.

Above, 1728-1736 should be noted, followed by 1743-1751, which, if breached, might take it to revisit the 1758-1768 level

2011-11-21_0214

As shown below, positive divergence in orderflow in relation to price suggests upside might be in the cards in the future, if  the 1710-1700 level is respected.

2011-11-21_0218

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