Gold Bounces…Nothing to Write Home About
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
Commodity Analysis: To review, “Gold didn’t quite trade to new lows but silver did last week. Non-confirmations (divergences) of price extremes between related assets often mark market turns or at least the beginning of a reversal pattern. Gold’s low was also at a downward sloping trend channel. Recent chop could be the beginning of gold forming a bullish base.” Near term, watch for resistance from the ‘meridian’ line that has proved important on numerous occasions. The line is at about 1440 this week. 1367 is still estimated support (low today was 1365). Failure to hold that level on a daily closing basis would be worrisome.
Commodity Trading Strategy: Flat
LEVELS: 1307 1321 1367 1414 1440 1470