Gold to stay range bound until overbought conditions ease
|SUPPORT: 1267/65 1262 1250/49 1241** 1238 1226 1222/18 1201/1199
RESISTANCE: 1275 1278 1282 1293/95 1298/99 1304 1310
We failed to break the 1278 barrier and this then set off the chain of selling pressure we saw yesterday...we knew this 1275/78 would prove to be a barrier...38.2 fibs always are...I don't think people realise just how important this particular fib is on med term charts....well it played out once again and the market tumbled...we currently are still clinging to the 1266/64 support and this will be vital in the next step to Gold...can we cling onto this support...giving us a chance to at least try again for 1275/;78 which has held the past 3 attempts....remember doubles hold...triples don't and if they do they send a clear message to markets...so unless we break and hold above 1278 the market will take this as a sign of weakness and jump on the bear bandwagon and we could see the lows again...Now all this depends on a number of factors....will the stochastics turn bearish....well we are seeing a slight divergence in price currently...so that's is on radar....will 1264 hold....will 1278 hold....will we stay range bound till the overbought conditions have eased slightly..It is not with Gold of just going up or down...because we position trade it it can do nothing for days then just move 30 50$....so lets see how we play out...Shorts currently carry the slight edge after failure at 1278 so this will be noted by Gold traders....The chart pattern is bearish on the dailies....Only the weeklies show a glimmer of hope down at the 1246/42 area and the weekly stochastics are oversold and this needs to be addressed ....Short point...stay trading within the defined parameters and play the range till it breaks.
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