Richard Perry
Independent Analyst
Recoveries in gold are still a chance to sell. The daily chart suggests that the latest bounce, off the $1225.30 low has been fairly tough (long upside tails on the candles suggest a lack of conviction). The drift higher is still struggling to overcome the initial resistance of the old key low from June at $1240.60, whilst the lower bound of the former downtrend channel is also a barrier around $1245. I still view the series of resistance levels between $1240 and $1260 as an area where the selling pressure will resume and am therefore on the lookout for sell signals. There is little conviction in the momentum indicators which continue to suggest downside momentum is strong and selling into rallies is the correct strategy.
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