Gold Awaits Resolution to Volatile Range

Daily Bars

Prepared by Jamie Saettele, CMT

Gold was down over $10 today after rallying over $20 on Tuesday. The decline from the 2/3 high and subsequent recovery may compose waves 1 and 2 of a larger bear leg. A bearish is valid against 1765.90 (daily key reversal last Friday). A drop below 1712.60 would shift focus to the January congestion zone at 1647/85.

Bottom Line – short, stop 1765.90, target open