Daily Trading Report for Gold by CharmerCharts

By Roger Baettig | August 29 2012 4:56 AM

Gold held support and traded higher...However the daily charts have converged to show a move lower, with 1657 once more targeted. This obviously does depend on being able to hold below 1670.

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Only if we break 1670 would we re-instate longs for 1676. This is unlikely given the daily chart bearish scenario, but you never know and if we do break 1676 there will be little or nothing to hold us back from trading to the weekly 38.2 fib level of 1384/86.

Support remains solid at 1657, and we would be buyers on weakness and only reverse if the market breaks below 1653. Now if we do break 1653 there is scope for the market to try for 1644/42, but this would offer a good re-entry point for buyers, and we will see prior sellers covering their shorts to here.