Gold Bounces; Near Term Focus is Still Lower
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
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Commodity Analysis: “Gold’s rally reversed gains after running into former lows and channel resistance. Gold’s advance is better than silver’s, which remains extremely depressed. Daily RSI on the metal has recovered to 60, a common area for the indicator to stop in a bear market.” The drop below Friday’s low reinforces the idea that gold is at least in for a deep retracement of the rally from the June low.
Commodity Trading Strategy: Short, trail stop to 1322 (from 1355), targets 1270 and 1235
LEVELS: 1224 1244 1267 1296 1320 1348