Technical forecast for Spot Gold

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Spot Gold tested resistance at 1335/37 to take profit as expected & saw a high for the day as predicted. Prices then sold off to 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 as stated yesterday. Be aware that a break lower should target 1287 & then 1282/81.

So far the longs from 1307/05 are working nicely as we bottomed at 1303/02. Look for a test of resistance at 1318 & above here 1327/28 for some profit taking on longs. However if we continue higher look for a selling opportunity at 1333/35 & a high for the day expected. Exit remaining longs & try shorts with stops above 1343.

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