Daily Forecast - 22 July 2016
Gold Spot
Gold bulls are starting to fight back as we become oversold. The high for the last 4 days has been 1334/36 so this is the most important resistance of the day. Shorts need stops above 1340. A break higher targets 1345 then resistance at 1350. I am more wary of trying shorts now in oversold conditions bearing in mind the 7 month bull trend. A break higher targets 1356/57 then 1360/61.
There is a good chance we will fail to beat strong resistance at 1334/36 & target 1327/25, 1320/19 & perhaps as far as god support at 1314/13. This could hold the downside & may now mark a low for the 2 week correction. However on a break lower I'm hoping to see a test of very strong support at 1300/98 which should be an excellent buying opportunity & the best chance of a low for the correction.
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