Gold Trades Around Significant Resistance Level
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
-“Ultimately, it may be that gold has been tracing out a triangle since Dec 31st of 2013 that leads to new lows. The metal needs to gain traction above 1296 to alleviate downside pressure. 1240 is resistance. Support for a bounce is seen at 1206. “
-“Do keep in mind that gold has yet to confirm the new low in silver. Even so, any bounce should be treated as countertrend. Watch for resistance at 1240. 1206 is estimated support again.” Gold has been testing the mentioned 1240 for the last several days so hopefully the market shows it colors soon. Wednesday’s outside day may be useful as a pivot for direction (use the range as zone to determine bias).
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