GOLD: Strong resistance at 1218/19

Jason Sen DayTradeIdeas.co.uk

Daily Forecast - 24 January 2017

Gold Spot

Gold most important of the day is obviously strong resistance at 1218/19. We may be witnessing the top of the bear market correction as bears sell in to this level. Shorts need stops above 1222 but be ready to buy a break above here for some profit taking on longs at the next targets of 1228/29 & 1232/33. Failure to beat 1218/19 targets 1209/10 (& this level worked perfectly yesterday as we bottomed exactly here). However the bear trend is likely to resume at some stage this week so below here helps to confirm a negative outlook & a top in place, targeting 1206/05 then support at 1197/95. A good chance of a low for the day but longs will be increasingly risky (if I'm right about the bear trend resuming). A break lower therefore is an added sell signal & sees 1197/96 act as resistance targeting the best support for the week at 1183/82 for some profit taking on shorts as we become oversold in the short term.

Daily Report GOLD Current Trading Positions

Sell 40%

Buy 60%

Avg Sell Price 1196.00

Avg Buy Price 1215.62

Liquidity Distribution

Author

Jason Sen

DayTradeIdeas.co.uk

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