Technical forecast for Spot Gold

Spot-Gold4

Spot Gold has collapsed breaking 1617/16 to hit 1598.23. The bounce may test resistance at 1619/1621. This should be tough to beat so a top for the day here again is possible but a push higher targets 1626 with any further strength then likely to target 1633/35 for an excellent selling opportunity.

If we cannot get through 1619/21 look for a test of support at 1611/10. A move below 1609 then risks a test of last week’s low at 1598. W are getting very oversold so we may find a floor here again but on a break look for 1595 & then 1590 below but there is scope for a test of 1585 this week in this 4 month down trend.

Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens. Jason always had an interest in technical analysis throughout his trading career but began to study this area in depth from 2006. www.daytradeideas.com has established itself as the leading provider of... More