Best Financial Markets Analysis Article The week is beginning with some major changes in equities, treasury bonds and commodity prices. Starting on Monday, Gold started significant move to the upside, turning both short and intermediate term charts bullish:

You might have read in earlier market comments that Crossroads FX uses an approach which bases short- and intermediate term trade decisions on the actual behaviour of prices, not on fundamental aspects. So we will rarely ask for any reasons "why" a certain price behaviour persists. Accordingly, we developed a proprietary indicator that identifies the line of least resistance both to the downside and to the upside, and prints them on the chart as a green line (buy line) and a red line (sell line).

You can see on the following charts that if the price trades for 2 consecutive bars above the green line, rising prices can be expected. Once the price trades for 2 bars below the red line, you should prepare for falling prices. Within an established downtrend, the green line also acts as resistance.

As a conclusion, Gold is in a new uptrend, with bulls in control. The line of least resistance is pointing to more upside in prices.

If you have any questions, please do not hesitate to contact us by writing an email to

By Frederic Simons

http://www.crossroadsfx.hostoi.com

© 2009 Copyright Frederic Simons - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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