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Commodity Technical Analysis: Gold Reverses Sharply to Close Near Open

By , Sr. Technical Strategist
13 December 2012 02:53 GMT

Daily Bars

Commodity_Technical_Analysis_Gold_Reverses_Sharply_to_Close_Near_Open_body_gold.png, Commodity Technical Analysis: Gold Reverses Sharply to Close Near Open

Chart Prepared by Jamie Saettele, CMT

Commodity Analysis: “Viewed in light of the 3 wave advance from 1672.50, the trend is lower.” Friday’s JS Spike right at mentioned support (1685) will probably propel gold to at least the 61.8% retracement of the decline from the 11/12 high at 1727. There is trendline resistance to keep an eye on as well.

Commodity Trading Strategy: Previous comments were “look to short strength from 1727 to 1738 with a 1754 stop.” After today’s spike and reversal, gold might not reach 1727. Wait for at least a day for the near term pattern to clear up before jumping into something at a less than ideal level.

LEVELS: 1673 1683 1704 1727 1738 1754

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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13 December 2012 02:53 GMT