Gold Bulls Are Fighting Back
Jason Sen | Jul 22, 2016 01:00AM ET
Gold bulls are starting to fight back as we become oversold. The high for the last 4 days has been 1334/36 so this is the most important resistance of the day. Shorts need stops above 1340.
A break higher targets 1345 then resistance at 1350. I am more wary of trying shorts now in oversold conditions bearing in mind the 7 month bull trend. A break higher targets 1356/57 then 1360/61.
There is a good chance we will fail to beat strong resistance at 1334/36 and target 1327/25, 1320/19 and perhaps as far as good support at 1314/13. This could hold the downside and may now mark a low for the 2 week correction.
However on a break lower I'm hoping to see a test of very strong support at 1300/98 which should be an excellent buying opportunity and the best chance of a low for the correction.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.