Spot Gold: Severely Overbought
Jason Sen | Feb 19, 2014 02:59AM ET
Gold severely overbought on daily chart and headed below 1326/27 as expected. This also acted nicely as resistance in the afternoon. We held the 1313 support yesterday but as we break 2 week trend line support at 1317 we look likely to retest 1313 today. The outlook is increasingly negative so we could continue lower to good support at 1310/09. This could hold the downside today, but a break lower cannot be ruled out and could target 1304/03, and then perhaps 1298 later in the week .
Resistance at 1325/26 should hold any rebound now. However above here we can use the 1329/32 highs as a selling opportunity.
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