Gold Rallies but Stays Under Key Level

240 Minute Bars

Prepared by Jamie Saettele, CMT

A drop to a new low remains favored despite the rally through Elliott channel resistance. The key level is the 11/21 low (price is in a bearish impulse below there). 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. The 200 day average reinforces resistance at Friday’s high as well.

Bottom Line – short against 1675, target new lows