David Solin | Sep 12, 2013 03:09PM ET
Gold (GLD ) near-term outlook
In the Sep 6th email, said there was some potential that a more important top was in place at the Aug 27th high at 137.55 (June high, 38% retracement from the Oct high at 174.07, approx $1434 in gold), and with a month or so of declines all the way back toward the Jun low at 114.68 ($1179). The market has indeed weakened sharply since, breaking back below the key 130.30/131.30 area (multiple lows since April), and increasing the likelihood of declines back toward that 114.68 ($1179) low. Note too that technicals remain weak (see sell mode on the daily macd at bottom of chart), and the US$ index is seen forming an important bottom (see email from Monday, inversely correlated), supporting this view of further weakness in gld/gold. Nearby support is seen at 126.00/25 (50% retracement from the 114.68 low), while resistance is again seen in the whole 130.30/131.30 area, and the bearish trendline from Sept 3rd (currently at 132.75/90).
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