Gold Market in Sideways Correction; 1270 is Key
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
-A bearish Nov has given way to a sideways Dec. Near term pattern remains bearish however. Rallies are in 3 waves (suggests correction) and declines are in 5 waves (suggest impulsion).
-Beyond 1180, the Jul 2010 low at 1157 and perhaps the 2010 low of 1045 become of interest. The latter level may be one that inspires a significant reversal as the 2008 high is at 1033. In general, the 1000 area was a ceiling for several years and may be the new floor but probably not until 2014.
Trading Strategy: Short at market (current 1245), stop 1270, target 1160 (1211 – (1267-1211)) = 1155
LEVELS: 1208 1224 1239 | 1252 1262 1269
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.