Gold will continue lower
|SUPPORT: 1172 1165 1146 1142 1131 1128 1122 1104 1088 1080**
RESISTANCE: 1178/79 1188 1194 1197 1204 1216
Our daily pivot point is at 1175 today....and currently we are trading above here...There is scope to trade higher to the 38.2 Fib level of 1187...but we must watch this carefully ..If we break below 1170 there is scope to go back to the 23.6 fib @ 1162...Now this ties in with the S2 at exactly the same level...and also support line support....so that would be a good place to re-enter Gold looking for a resumption of this corrective phase we have been seeing since the fall of Nov and Dec last year....Daily charts look a bit overextended on the topside and therefore we are looking for the market to have possibly one more thrust higher to sniff this 1187 resistance and then fall....as well as the chart support we have PP @ 1175 R1 1180 R2 1188** R3 1193 S1 1167 S2 1162 AND S3 1154....So please be aware of these levels...especially the 1188/1162 ones...These are crucial to the direction of Gold....Now obviously if the market makes a break above 1193 then it will be given another boost and we should be able to trade to the 1199/1204 resistance...but being overbought will not help this...and at some time this week we should see the market fall to ease this overbought scenario....I would not be worried about longs unless we break 1162 and stay below ere...Then the recent short term uptrend could be over and Gold will continue lower and go back towards the 1146/42 support..
Gold Current Trading Positions
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