GOLD ETF (Exchange Traded Fund traded on ASX)
Notes (drw 20090217)
• Notice the way two different forces meet to create the high of week 20090222. (The support line 3 meets the resist line 4).
• The support and resist channel between 1 and 4 is steeper than that being resisted by 3.
• If the price continues to pull back, notice how it reacts to the support line 1.
• Support line 1 may support it and the price will go back to retest 5, the recent high of 144.
• There probably isn't enough money between 1 and 5 to make it worth the risk og puying on support at 1.
• If 1 doesn't support it, 2 is more likely to. If it breaks 2 on the downside look for support at 105 - around end of the year.
• If it does and it pulls away and breaks 5, we look for it to pull back to 5 and find support there on good volume before buying.