Gold 1095/97 is Key Short Term Level
Chart Prepared by Jamie Saettele, CMT
-“Pay attention to RSI, which has been coiling since November. The length of the momentum coil indicates a great deal of stored energy and the potential for an explosive move.”
-“The latest attempt on the upside failed (RSI failed at its own trendline), which keeps the broader move sideways to down. Gold completed the head and shoulders pattern with the 7/15 close. Targets are 1093 and 1106.50. The breakdown is valid as long as price is below the 7/6 high of 1174.78.”
“The target has been reached. Gold may try and form an important low down here at a long term trendline.” If gold has turned the corner (big if given that a sliding parallel top ticked Tuesday’s rally), then 1095/97 should provide support.