Technical forecast for Spot Gold

Spot Gold did make low for the correction as hoped & bounced back to 1585 as predicted. This is proving a struggle to overcome as we had expected but a push higher should happen today to target 1604/05, possibly as far as 1611/12 but this should be the top at this stage.

Any sell off is unlikely to see us fall as far as 1555 now. If we do test this level it should be a very good buying opportunity but we will need to keep stops tight below here as a break could see 1548/46. If this support breaks there really is very little to stop a move towards 1533 with 1531/27 the next area of support. This area is the low for 2012 and as such should be a welcome buying opportunity.

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