Daily Forecast - 27 January 2016
Gold Spot
Gold initially hit the target 1116/18 & topped exactly here as expected, dipping to the first support at 1109/08 & bottomed exactly here. We then broke higher to the next target of 1122/23 & topped exactly here. We look a little overbought now short term to watch for profit taking today. First support at 1116/15 but below here targets a buying opportunity at 1111/1110. Longs need stops below 1108. A break lower however targets an excellent buying opportunity at 1106/05. A bounce from here is expected but longs need stops below 1102.
Resistance at 1122/23 could hold any bounce again today. However a break higher then targets 1129/30. Gains are expected to be limited in overbought conditions & we could use this as a selling opportunity with stops above 1134.
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