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Gold: Meets 100 Day Moving Average Resistance At 1247/48

Published 06/21/2017, 02:43 AM
Updated 07/09/2023, 06:31 AM

Gold Daily Chart

Gold bounce from 1242/41 meets the 100 day moving average resistance at 1247/48 and we should struggle here again. Although there is no buy signal we are severely oversold so just bear in mind we could see a small correction higher. If we manage a break above 1250 look for a selling opportunity at 1253/54, with stops above 1259.

Failure to beat first resistance at 1247/48 re-targets 1242/41 then 200 day moving average support at 1238/37 for some profit taking on some shorts. In oversold conditions this could hold the downside but longs look risky - below here we test 200 week moving average at 1234/33 and probably the best chance of a low for the week. I would certainly cover all remaining shorts at this stage and wait to see what happens from here. If we are to remain in a 6 month bull trend we should start the next leg higher. Longs need stops below 1225.

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