Gold came lower on Friday, reaching 1384 on the break of 1395. We have seen a recovery off this Fib level but again 1400/04 is looking to be the top of any rally now. We would look again for the market to deteriorate through to 1384 once more.
This is good support and if we do lose this, and more importantly stay below here, we are going to see more movement to the downside with 1374/72 the short term objective. Initially cover shorts to here, then re-sell below 1368.
We anticipate that 1400/04 is going to hold the topside; If however we edge up past 1408 then we are looking at the 1420/25 resistance once more, where we will encounter a wealth of selling pressure.
This is good support and if we do lose this, and more importantly stay below here, we are going to see more movement to the downside with 1374/72 the short term objective. Initially cover shorts to here, then re-sell below 1368.
We anticipate that 1400/04 is going to hold the topside; If however we edge up past 1408 then we are looking at the 1420/25 resistance once more, where we will encounter a wealth of selling pressure.