Spot Gold: Hits 1236
Carol Harmer | Jan 12, 2014 05:26AM ET
Gold hit 1236 target and most traders would have covered position. However as yet there is still no reason why Gold cannot continue to trade higher. Obviously we have the 1239 to overcome but we are happily above the daily pivot at 1227, therefore whilst this is the case further buying pressure will be evident.
We do need to clear 1239. If accomplished we can go further and see 1246 to 1251. This however should be the top of any rally and we will encounter strong selling pressure here so it is prudent to cover all long positions.
Now we know that 1225 is a good support also with 1227 being the pivot level. We also know that this should support the market on any drawdown. We still have trendline support coming in underneath here at 1219, so we can attempt small longs in this area...keeping stops below 1215.
Below 1215 and then Gold will fall and we would be looking at 1201/1199 as the immediate objective. Below 1194 and we are back towards the 1180 support.
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