Technical forecast for Spot Gold

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Spot Gold beat 1374/77 but has so far failed just below this week’s high at 1384. As stated yesterday this offers a selling opportunity with stops above 1386. A break higher could target 1395. We are now overbought short term & on the daily chart which should continue to limit the topside.

Watch for a test of support at 1368 & if we continue lower we could reach 1359/58 & a low for the day expected. However longs need stops below 1355 for a test of the next support at 1352/51. Just be aware that if this does not hold we should test very good support at 1344/42 for a short term 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