Gold: Failure to beat first resistance at 1247/48

21 June 2017, 09:41
Tamas Molnar

Gold Spot

Gold bounce from 1242/41 meets the 100 day moving average resistance at 1247/48 & we should struggle here again. Although there is no buy signal we are severely oversold so just bear in mind we could see a small correction higher. If we manage a break above 1250 look for a selling opportunity at 1253/54, with stops above 1259.

Failure to beat first resistance at 1247/48 re-targets 1242/41 then 200 day moving average support at 1238/37 for some profit taking on some shorts. In oversold conditions this could hold the downside but longs look risky - below here we test 200 week moving average at 1234/33 & probably the best chance of a low for the week. I would certainly cover all remaining shorts at this stage & wait to see what happens from here. If we are to remain in a 6 month bull trend we should start the next leg higher. Longs need stops below 1225.

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