Technical forecast for Spot Gold

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Spot Gold tested & held support at 1273/71 for a bounce as predicted as we bottomed at 1274. If we manage a recovery towards resistance at 1295/1300 this area could hold the topside today as we start to look overbought on the daily chart. Remember we are in a strong down trend so eventually we should head lower again. However use stops on shorts above 1308 as a break higher could allow a move towards 1325/30 for an excellent selling opportunity.

Support at 1271/68 could be tested again today but the outlook is becoming more negative so if we break lower look for 1260 & may be as far as a test of support at 1255/54.

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