Technician Yola Edwards had forecast a rise in gold to $1032; it rose to $1034, before correcting. In her Edwards Charts she offers a technical outlook for gold, Goldcorp (NYSE: GG) and Barrick Gold (NYSE: ABX).

"Gold exceeded my $1032.50 level by posting an intraday high just shy of $1034 but it turned on a dime and plunged over a US$100. The daily chart now indicates prices are oversold according to the MACD and RSI as the price bounces off support at the lower Bollinger band.

"However, a negative bias remains. A corrective wave four will retrace to the top of wave 1 at about US$865 if the decline holds true to theory, which should be viewed as a buying opportunity as the fifth advancing wave should see gold rally to about $1145 over the next four months.

"Goldcorp has traced out a 'U' shaped bottom over the past two years and is now in a consolidation phase. Since pulling back from its high two weeks ago the month ended with a type of spinning top which halted the previous decline.

"A recent weekly candlestick is beginning on the negative side but is exhibiting a long shadow which shows that the bears case is waning somewhat. The consolidation is within an uptrend but with the weekly and daily charts somewhat mixed a sideways consolidation between $38 and $42 may materialize before another attempt at new highs.

"A close below $37.21 would see the stock dip further to about $35, however a close above $45 would signal a potential breakout with a target of about $66.60 over the ensuing six months. Add to positions now and on dips to $35.

"Barrick Gold was pummelled along with gold bullion prices, but has found support from its November '07 breakout. Its technical action would suggest lower prices and thus a retest of the recent lows at $42.50 would not be a surprise.

"However a close below $42.77 would suggest additional pressure with a downside target of $40.90. If the stock dips back to retest the lows and is able to bounce off of them then a double bottom would be in place and a rally should materialize from there.

"A close above $46.38 could be the beginning of a retest of the recent highs over the next month. Buy at $42.77 with a stop at $41.78."