Technical Forecast for Gold
Spot Gold managed a recovery towards resistance at 1295/1300 & as predicted this area did hold the topside as we start to look overbought on the daily chart. Remember we are in a strong down trend so eventually we should head lower again. We have fallen back to our buying opportunity at 1271/70 with a bounce from here expected & indeed we bottomed exactly here .
However the outlook is turning more negative & below 1268 look for a move towards 1264 then the next support
at 1255/54. We could expect a low for the day here but use stops on any longs below 1248 as the down trend could dominate this market in to the end of the week.
Resistance at 1287/89 then 1296/1300 for a selling opportunity with stops above 1308 as a break higher could allow a move towards 1325/30 for an excellent selling opportunity.
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