Daily Forecast - 23 October 2014
Gold December Contract
Gold held below last week’s high at 1250/51. As stated yesterday, ‘unfortunately for bulls this does just look like a bounce in a bear trend & a good chance we turn lower today to resume that trend.’ Exactly as predicted prices tumbled to good support at 1240/39. This has held the downside as I write BUT this area is key to today’s direction. Longs need stops below 1234. A break lower is our first signal of the return of the bear trend. Be ready therefore to go with a break, using 1239/40 as resistance to target 1232 then support at 1229/28. A good chance of a low for the day, but longs need stops below 1225. Be ready to go with a break lower to target 1222/20.
If we can hold good support at 1240/39, look for a bounce to 1246/47, possibly 1249/50. Exit longs & try shorts from here up to 1255/56 with stops above 1258. Be ready however to go with an unexpected break higher to target strong resistance at 1263/65. Try shorts with stops above 1269. Above here we test further strong resistance at 1273/74 for a selling opportunity with stops above 1279.
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