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Gold Severely Oversold Short Term

Published 10/06/2016, 03:49 AM
Updated 07/09/2023, 06:31 AM
XAU/USD
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GC
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Gold Weekly Chart

Gold severely oversold short term and is more likely to see a recovery into Friday to target 1273/74, then stronger resistance at 1280/81. We should struggle here today, but further gains in to Friday not out of the question targeting 1286/87 & perhaps as far as an excellent selling opportunity at 1292/94, with stops above 1299.

The 200 day moving average at 1260/59 is the only support worthy of note, but could hold the downside in severely oversold conditions today. Longs need stops below 1255 for a test of longer term Fibonacci support at 1250/49. Just be aware that a close below 1249 is a further sell signal.

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