Monday, November 27, 2006
December CBOT Gold
We've locked in a profit on the December 100 oz CBOT gold futures tonight. Our entry point was $632.70 and we exited at $639.60 for a gain of about $700 per contract. The $640 area remains a tough area of resistance even with the recent sharp dollar weakness. With no major support until the $633 level and tough resistance at $640, along with an RSI above 70 it was time to take a profit. IF gold can break above $642 in the near term, we would be buyers again with an objective of seeing gold recapture $650. Longer term, we have no doubt that gold is poised to rally strongly.