Technical forecast for Spot Gold

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Spot Gold continued lower to target Fibonacci support at 1307. Here we exited shorts & tried longs with stops below 1300. This trade worked perfectly as we bottomed at 1305 & shot higher to 1327. Friday’s price action was quite positive as we look for a test of resistance at 1335/37. A high for the day is possible & we can take profit here but be ready to buy back in on a break higher for a move towards resistance at 1353/54. Exit longs & try shorts with stops above 1360.

Immediate support is 1320/19 but below here risks a retest of 1307/05 for a buying opportunity. We are starting to look oversold on the daily chart so could start a recovery this week. However longs need stops below 1300. Be aware that a break lower should target 1287 & then 1282/81.

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