Gold 20/09/2012 - 4h Chart Analysis GOLD – 4 HOURS CHART COMMENTS: Please observe how the traders confirm and re-confirm a certain level in order to reduce their uncertainty. This way, the Gold’s price “tried” already three times the 6.85 Fib grade-level at 1.779,91usd. Obviously, the supporting action of the 50SMA helped the recent activity of the price. It is rare to observe a waves’ sequence of similar time frame exceed the 6.85 Fib grade-level. If it happens, the price will continue moving in a different-longer time frame-time cycle frame. Otherwise, at the present level you will observe the beginning of a correction that by the passing of time may develop in trend reversal. SUGGESTIONS: For as long as the price remains above the 50SMA you keep “long” direction eventually increasing your long exposure. Attention though, the increase of exposure requires tight follow up of the price evolution. You should not leave your monitor un-attended. Once the price crosses from above the 50SMA and the U1 trend line you must consider the “short” direction. The downwards target is set at the level of the 200SMA at the time of crossing with the falling price, an attractive risk/reward ratio.