Gold has traded higher as expected and overnight we have seen a 1354 print. Still, it's overbought, although indicators continue to point higher. So, unless we see a turn in these stochastics. we remain in a 'buying the dips' mode..
We are holding above the daily pivot at 1347 and would use this today as a directional indicator as long as we stay trading above this support there is no reason we cannot trade higher and head for the 61.8 med term fib at 1364. After that we have our R2 at 1367, so this 1364/67 is where we would look to take profits.
We should see a retracement from here, back to the daily pivot of 1347. If we lose this 1347 area we can see pullbacks towards 1339/38. Cover any shorts at this point and look to instate small longs, but please keep your eyes on the daily stochastics.
Short term stochastics are now turning bullish from 50% so this is a sign of strength which means this 1364/67 target does look to be the way forward, at least initially.