Gold: Short-term support at 1272 key for direction

Daily Forecast - 20 April 2017

Gold Spot

Gold key to direction today is good short term support at 1272/71. Watch for a possible bounce from here...perhaps to 1279/81. (It is worth keeping a core short position though). If you try a long, stop below 1267. Be ready to sell a break below targeting 1265/64, 1261 & good support at 1258/56. Exit shorts & try longs with stops below 1250.

First resistance at 1281/82 but further gains obviously run in to a selling opportunity in the 1290/95 area. We have further short term trend line resistance at 1301/02 so it is only a clear & sustained break above here that signals a very bullish breakout. A weekly close above here tomorrow night would be required for bullish confirmation before buying in to longs - there is of course always the risk of a spike higher to trigger stops at such a major level before prices collapse. If a sustained breakout is seen however we have the first confirmation that Gold is starting a longer term bull market.

Gold

 

Interested in Gold technicals? Check out the key levels

    1. R3 1306.67
    2. R2 1298.69
    3. R1 1289.15
  1. PP 1281.17
    1. S1 1271.63
    2. S2 1263.65
    3. S3 1254.11

 

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