Gold witnessed the biggest one-day selloff in its history yesterday, plunging to record a low at 1320.00 level, before rebounding with the start of today’s session. The drop suggests that the sell-off could be exaggerated, and usually when we witness such sell-offs, it leads to major volatility where correctional bounces can be strong and lengthy. Accordingly, we will look to short the metal but at a higher price.
** Overall trend ( More than one year)
** Intermediate ( More than three months) ** Short term ( Less than three months) ** Chart is based on GMT+2 timing
Notes:
*if price reaches within 20% from target before triggering entry, signal is canceled and not valid anymore. | |||||
| Support | 1320.00 | 1308.00 | 1300.00 | 1285.00 | 1260.00 |
| Resistance | 1385.00 | 1400.00 | 1425.00 | 1440.00 | 1458.00 |
| Recommendation | Based on the charts and explanations above, we prefer to short gold around 1385.00, targeting 1350.00 and 1325.00 Stop loss above 1400.00 | ||||
Apr 16, 2013
gold forescast
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