Technical forecast for Spot Gold

gold

Spot Gold hit the next target & support at 1396/94 for a buying opportunity & a low for the day with stops below 1389. This trade worked perfectly as we bottomed at 1392 & rallied back up to 1405. The important level to watch today is 1395/91. Despite being oversold short term a break lower does look possible & should target 1385/84. A low for the day is likely here but is we continue lower look for a buying opportunity at 1374/72 with stops below 1367.

Immediate resistance at 1403/05 should be a struggle & should be worth exiting longs. However if we continue higher we can try shorts up to resistance at 1414/16, where we expect a high for the day. Use stops above 1419.

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