Gold Retraces Monday Drop; Faces Tough Road up to 1270
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
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-Gold wiped out Monday’s losses but the damage done on the break of the Oct low isn’t wiped away in one day. In fact, the rally has resulted in the price facing resistance again.
-Obvious levels of interest over the next few days and weeks are the 7/5 low at 1208 and the Jun low of 1180.
-Beyond 1180, the Jul 2010 low at 1157 and perhaps the 2010 low of 1045 become of interest. The latter level may be one that inspires a significant reversal as the 2008 high is at 1033. In general, the 1000 area was a ceiling for several years and may be the new floor but probably not until 2014.
Trading Strategy: Flat
LEVELS: 1150 1180 1208 | 1229 1241 1258
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com