Gold had a good chance to trade higher yesterday, but failed at quite significant resistance..still staying within a tight trading band..If you look at the 240 and 60 min charts you can see this quite clearly and this sideways action has put the market in overbought territory on these timeframes...They are looking dangerously oversold on the dailies...but the weeklies remain bearish...Confused eh!! Well don't be...strip away all these things and just use support and resistance levels.
We backed away from good resistance yesterday..so at the moment the upside pressure is off...We look then to 1706/04 for support... This is also our first Pivotal S1 area and a good place to take profits. Re-sell below here as we see the market then coming lower for 1697 initially, with 1693 our overall objective.
Now if we do manage to break higher...and not just spike higher...I mean a concerted effort to break and hold above 1717 we will reassess the bearish view as 1723 to 1728 would then be the targeted area.
I would like to take this opportunity of thanking you all for your support over the past few years. I am sure the transition from Charmercharts to Jason Sen will go as smoothly as possible.
The article was first published by CharmerCharts