Gold Collapsed As Expected Through 1253/52
Jason Sen | Nov 14, 2016 02:13AM ET
Gold collapsed as expected through 1253/52 and October lows at 1242/41 as we hit 1219. The outlook is negative and failure to hold above 1227 keeps the pressure on for a retest of 1220. This is not a good support level and a break below 1219 would not be a surprise, targeting 1210/08.
This is the best and really the only support to note today. A good area for profit taking on shorts but longs are risky. If you try use a stop below 1200. A break below 1200 is another sell signal and losses could accelerate below here as longer term stops are likely to be triggered by funds.
UPDATE: Gold has so far bottomed 2 points above the 1210 target. If we recover to ease short term oversold conditions look for 1219/20. Gains are likely to be limited but above here targets quite strong resistance at 1231/32. In the unlikely event that we break above here look for a selling opportunity at 1241/42 with a good chance of a high for the day. Shorts need stops above 1246 but look for another excellent selling opportunity at 1251/52.
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