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Gold Bulls Are Fighting Back

Published 07/22/2016, 01:00 AM
Updated 07/09/2023, 06:31 AM

Gold Weekly Chart

Gold bulls are starting to fight back as we become oversold. The high for the last 4 days has been 1334/36 so this is the most important resistance of the day. Shorts need stops above 1340.

A break higher targets 1345 then resistance at 1350. I am more wary of trying shorts now in oversold conditions bearing in mind the 7 month bull trend. A break higher targets 1356/57 then 1360/61.

There is a good chance we will fail to beat strong resistance at 1334/36 and target 1327/25, 1320/19 and perhaps as far as good support at 1314/13. This could hold the downside and may now mark a low for the 2 week correction.

However on a break lower I'm hoping to see a test of very strong support at 1300/98 which should be an excellent buying opportunity and the best chance of a low for the correction.

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