Daily Trading Report for Gold by CharmerCharts

By Roger Baettig | August 17 2012 5:14 AM

Gold traded above 1604 and this set off buyers looking for 1617. That found they traded to 1619 before grinding to a halt. We do have this upper trendline at 1626 and we would expect this to hold the topside.

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Cover all longs to these higher levels..re-instate shorts, looking for the market to move towards the 1604 support. Cover shorts in this area. Attempt small longs, but again, keep the stops tight, as a break below 1600 will see a reversal in direction and declines then down to 1583.

So as we are selling to 1626, where should stops be placed. They should be wide enough for the Algo systems not to bother with, so I suggest above 1630 would be the ideal place to put them...If they are activated then it would seem like we have more to go on the topside so go with the buyers for 1639/40.