Gold overbought, starting to turn lower
|Gold hit 1251 yesterday and that was enough and down we came...Now the 78.6 Fib is at 1249 on the 4 hrly charts...we are overbought we have started to turn lower...so it could be a day of correction for Gold...
I would think that we can come lower and a move back to 1237/36..Now that would mean we have had a good retracement and this area will then decided where Gold goes from here...As I said its tracking the $ and if we see a $ correction Gold should fall...I am a tad worried that we have stayed below this 1251/49 area.
Looking at the daily charts also these are looking overcooked on the topside and should begin to trade lower....Now as Iv said 1236 is good support....we break below here we have support once more at 1226...I believe buyers will be coming in at these lower levels and they will defend this support..
Now we really do have a raft of resistance and higher levels...we have the daily 61.8 coming in at 1254...the 200 day M/A at 1259 and chart resistance from previous highs at 1261 and 1263....Can we really break above here given we are at such overbought levels and that are beginning to turn lower... Im not sure...I would suggest not....
Now...if we fail to hold over 1226 look for 1216 as a viable target...
Gold Current Trading Positions
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