Gold Reverses at Channel Resistance
240 Minute Bars
Prepared by Jamie Saettele, CMT
“Price has exceeded 1600 and technical evidence suggests that 1630/40 should be strong resistance. This level is defined by the 20 and 200 day averages, 12/21 high, and channel resistance.” Gold reversed to the tick at its Elliott channel and a drop to a new low is favored. Keep in mind the potential for an extended decline (3rd of 3rd wave). Levels of interest would be former resistance from 2010 at 1445 and the 2011 low at 1320.
Bottom Line – short against 1675, target new lows
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