Gold could not break higher as I said yesterday....It failed at the 4 hrly 78.6 and came down closing at the lows...still under pressure... Technical indicators on the dailies have turned negative ...first time since the rise from 1122 so please be very careful of taking long positions...

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.......

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.. However...if these stochastics really start to continue to look weak Gold will not be able to hold up..

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...Below here look for 1204...

Gold

 

Gold Current Trading Positions

Sell 11%
Buy 89%
100.0%11.0%01020304050607080901000
Avg Sell Price 1265.00
Avg Buy Price 1218.13
Liquidity Distribution
1155.001231.721335.001155.001231.721335.00SellBuy

 

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