Gold tumbled yeasterday, breaching support around 1320 to drop as low as 1308 before finding some support. This morning, gold is trading near the lows and close to the 50 DMA after a tepid bounce off support.
It is clear that gold is correcting more deeply than we originally thought and the Wave 1 rally looks to have ended at 1391. The dollar has rebounded sharply from lows near 79 and oil and equities are also recovering well after a short sharp sell off.
Gold has retraced 50% of it's recent rally from 1238, however we expect further declines as an ABC correction unfolds.
Support can be found at 1307, 1295-1300, 1280, 1275, 1250-1255, 1237-1240, 1220-1225, 1210, 1200 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term, though this now looks unlikely.
Resistance can be found at 1318-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. The breakout above 1300 suggests an end to the intermediate term down trend and that a significant rally is now developing.
Our video for subscribers looks at some potential targets for this correction and our strategy for our next trade.
It is clear that gold is correcting more deeply than we originally thought and the Wave 1 rally looks to have ended at 1391. The dollar has rebounded sharply from lows near 79 and oil and equities are also recovering well after a short sharp sell off.
Gold has retraced 50% of it's recent rally from 1238, however we expect further declines as an ABC correction unfolds.
Support can be found at 1307, 1295-1300, 1280, 1275, 1250-1255, 1237-1240, 1220-1225, 1210, 1200 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term, though this now looks unlikely.
Resistance can be found at 1318-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. The breakout above 1300 suggests an end to the intermediate term down trend and that a significant rally is now developing.
Our video for subscribers looks at some potential targets for this correction and our strategy for our next trade.
