Gold: Further Losses Target First Support At 1233/32
Jason Sen | Feb 17, 2017 03:59AM ET
Gold topped exactly here at 1242/44 as expected to hit the first target of 1236/35 as I write. Further losses are likely targeting first support at 1233/32. This offers a 10 point profit on our shorts...not bad for an overnight trade. However if we continue lower look for the next target and support at 1227/26 which could hold the downside, but longs look risky.
If you want to try use a stop below 1223. On further losses look for 1219. Exit any remaining shorts here again and try longs down to our buying opportunity at 1217/16. A low for the day (and don't forget we predicted a low for the week here on Monday...which is exactly what happened) is expected but longs need stops below 1212.
If we hold 1235/36 look for a retest of strong resistance at 1242/44. Try shorts again with stops above 1248. A break higher however is therefore a buy signal initially targeting quite strong resistance at 1255/56 which should hold if tested during this week, for a dip back to the mid 1240 area perhaps.
A WEEKLY CLOSE ABOVE 1245 IS A BUY SIGNAL FOR NEXT WEEK.
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