In a departure from my usual Updata charts, here's the updated (no pun intended) daily chart for Xcite Energy.As I previously mentioned, the key to this was not the price trendline but the RSI trendline formed from the bullish divergence. We got the bounce yesterday with a doji candle in the price chart and these have both followed though nicely today to the extent that it managed to close back above the short term price uptrend.This is a classic false breakout and shows how important it is to use RSI in conjunction with price to help avoid getting caught out. I'm now long on this with a tight stop below 101p. My initial target will be the 112/3p resistance but if it does get back there then there will be a nice cup and handle pattern which should target 130p and then beyond when we consider the ascending triangle from...

OK, so $1265 wasn't the bottom for gold and I missed the bounce, however, there was a good opportunity to go short again on this based on a simple backtest of the previous support (breakdown) level at $1268.9 (I did post on the POG comments that I intended to short this here).The next major support is at $1157 and is shown on the weekly chart to the left. Here we see that $1157 is actually a double support and it's therefore really  quite important that it holds or it could go a fair bit lower quite quickly - it's the weekly low from July 2010 (which formed a weekly hammer which resulted in a breakout to the all time high) and also the 61.8% Fib of the entire move up from $682 lows in Oct 2008.Ultimately, this could go lower than even this level but we'll concentrate on this for...

I'm looking to short gold at $1320 as there are 2 levels of resistance there and a 3rd at $1337.9 so my stop will be above that one.There's the initial price low from the big drop and the short term downtrend resistance, plus the 61.8% Fib of the last drop at at around the $133o mark so that makes 4 resistances in a pretty short price range. The target will be the strong support around the $1170 level previously discussed. Original link...

OPHR is clinging on precariously to its channel support and is yet to close below it. Having said that, the possible higher low failed and there's yet to be another so the downtrend prevails for now.There are, however, multiple bullish divergences (not only in the RSI shown) which suggests that the current move to lower prices is weak. Yesterday's inside bar broke to the downside intraday today but closed above the key level which also suggests there's little appetite for lower prices here.I'll still wait for a higher low to form given the length of the downtrend and then I'll look to trade either that or the following  Original link...

Today's gap down came after a higher high but seems to confirm a negative RSI divergence against the earlier high which is bearish.It also failed to reach the 423p target from the W formation so it now seems to me that this rally was simply a corrective pattern despite the bullish RSI divergence at the recent low. It's not clear from the chart as shown, but yesterday's price high came as the RSI touched it's downtrend resistance which shouldn't really have happened until price was close to its downtrend and this adds to the bearish nature of the chart now.I'll be steering clear of this until a clearer opportunity  Original link...