Gold: double top at 1235, corrective downward pressure
|Gold backed away from our key 1236 level yesterday only reaching 1235 and is lower this morning...Now we know the levels...They are 1226....1216 and 1210.....Now 1226 is the first 23.6 short term fib on the 60 min charts...Now the market is looking a bit oversold on these 60 min charts...and this might well be enough to see Gold rise back towards 1235/36....
Now the thing is...It has also Double Topped at 1235...and we have said all along 1236 is the level we need to break...so for me I am now a bit wary of Gold...especially as I think that the daily charts are overextended and in need of a bit more corrective pressure...
If we fail to hold 1226 then we are coming back to the 1216 support.. We know this acted as good resistance on the way up...and a 20 $ move might well be enough to ease back the overbought scenario...Now we haven't yet turned bearish on Gold...but the RSI has turned lower...and we are getting signals that perhaps all is not well....Only if we clear 1236 and stay there do we have enough momentum t break higher for 1244 and 1255...At the moment this is not looking likely...
Now if long at 1216 leave very tight stops....A break below 1216 does put more pressure to the downside and sees further weakness down to 1211 possibly the 1205 area once more...We will have a better idea what Gold will do when the US wake up....
Interested in Gold technicals? Check out the key levels
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