Gold 1217 and 1207 are Possible Support Levels
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 pushed above 1240 (and pitchfork resistance) earlier this week. Today’s sharp decline could signal the beginning of a 5th wave decline to new lows. Near term, 1217 and 1207 are possible supports.
--Tradingideas are availabletoJ.S. Trade Desk members.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.