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Commodity Technical Analysis: Gold Supported at 50% Retracement

By , Sr. Technical Strategist
16 November 2012 01:17 GMT

Daily Bars

Commodity_Technical_Analysis_Gold_Supported_at_50_Retracement_body_gold.png, Commodity Technical Analysis: Gold Supported at 50% Retracement

Chart Prepared by Jamie Saettele, CMT

Commodity Analysis: Gold bounced from the 50% retracement of the rally from 1672.50 Thursday but what bothers me about being bullish is the corrective nature of the rally from the low (3 waves). However, the low on day 3 of the month and emotional trade at the low (11/2 was a JS Thrust day) suggests that price is likely to stay above 1672.50 for the remainder of November. Perhaps a complex correction is underway (series of 3 wave movements) throughout November.

Commodity Trading Strategy: I’m on the lookout for a wave 2 or B top below the October high at higher levels. Near term players may consider longs into 1700 (Fibonacci support at 1698).

LEVELS: 1685 1698 1705 1718 1731 1749

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16 November 2012 01:17 GMT