Technical forecast for Spot Gold

Spot Gold beat resistance at 1391/1401 but failed just below the next target of 1428/34. We did expect a high for the bounce here with the longer term picture still looking negative. If this area is tested today we can try shorts with stops on shorts needed above 1450 for 1469/70, possibly a move as far as 1503 this week.

Below 1390/85 keeps the pressure on prices for a test of support at 1357/52 then 1539/36 but below here another test of 1322 lows is likely. A break cannot be ruled out & could then target the 2011 low at 1308. Being a yearly low this is good support & we could see an end to the 6 month sell off here. However if we continue lower look for 1284/70. This should be a very good buying opportunity with a strong chance of a longer term bounce.

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