Gold Bullion and Crude Oil Bull Market Turning Point
Source: Resource Stock Digest, Chris Vermeulen (3/12/09)
"Gold is currently at support, which is generally a good buy point. . ."
Gold stocks look to be finding support and are testing resistance levels from both our trend line and 50 EMA . A breakout to the up side would be very bullish for these golden investments.
Gold and oil are both looking very bullish as of today.
The weekly chart of gold bullion although it is down for the week is currently testing the 10MA, which is a technical support level and has held many times before when gold is trending higher. We would like to see a bounce in gold, which would last several weeks or months.
Crude oil has bullish charts as well but is the flip side of gold. Oil has been moving higher and has broken out to the up side with momentum (MACD) generating a breakout signal. The next few weeks could provide some great buy points for these commodities if the technicals hold up.
Gold is currently at support, which is generally a good buy point, and oil is trading at the high but with a new trend line support drawn today it is trading near a possible support level.