Gold sold off further yesterday, finding some support at 1685 after a $20 drop after failing to take out 1705. Gold remains weak overnight and a test of 1672 looks likely from here. Gold is moving towards oversold on many indicators that we follow, however we think the chances of a "washout" sell off to take the market well into oversold territory are quite high.
We appear to be in the final stages of a Wave C decline, with possible bottoms at either 1672 or 1630. The market is likely to find support at the Wave A bottom at 1672, though whether this will hold longer term remains to be seen.
Once Wave 3 begins, we should see a sharp rally that takes us well above 1800 and on towards new highs. It now looks unlikely that this will be the case in December, though early 2013 should see the bull market well and truly back on track.
For our subscribers at www.goldtradingexperts.com, today's video looks at our strategy for our next trade and the last couple of days price action in more detail.
We appear to be in the final stages of a Wave C decline, with possible bottoms at either 1672 or 1630. The market is likely to find support at the Wave A bottom at 1672, though whether this will hold longer term remains to be seen.
Once Wave 3 begins, we should see a sharp rally that takes us well above 1800 and on towards new highs. It now looks unlikely that this will be the case in December, though early 2013 should see the bull market well and truly back on track.
For our subscribers at www.goldtradingexperts.com, today's video looks at our strategy for our next trade and the last couple of days price action in more detail.