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Gold Very Overbought In Bear Trend

Published 01/10/2017, 06:52 AM
Updated 07/09/2023, 06:31 AM

Gold Weekly Chart

Gold now very overbought in a bear trend as we retest of important resistance at 1180/82. Again, shorts need stops above the December high at 1187/88. An unexpected break higher this week however is a buy signal and initially targets resistance at 1199/1200 and again at 1204/05.

Below 1180 is more negative and should help our shorts as we target minor support at 1176/75 before good support for today at 1171/70. A low for the day is possible here again but longs are too risky. A break lower meets probably the best support for this week at 1162/61. A bounce from here is likely on the first test this week, but longs need stops below 1156.

Latest comments

Shorts will get killed powering the rally upward to 1210
More like we are being way oversold on the idea of 3 interest rate rises by a desperate FED! Crash the US economy- good for gold, don't raise rates, good for gold. What a choice...
Not overbought. It's been way oversold since the election. Sharia-gold's effect hasn't even been fully realized yet. This yellow metal still got some room to run..
Where are you showing any signs of overbought in your post? You have nothing. Do you get paid for writing this garbage?.
Gold has been down for months since august and we are over bought? Hmmmm. Are you in bear trend?
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