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Spot Gold: Severely Oversold

Published 03/26/2014, 05:09 AM
Updated 07/09/2023, 06:31 AM
GC
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Spot Gold Weekly Chart

Gold having a big battle around Fibonacci support at 1312. We did dip as far as 1305 but we are now trading back above 1312 and severely oversold on the daily chart so there is still a good chance we can start a recovery this week. First target is 1348/19 then 1323. Profit taking on our longs may be wise here as a high for the day could be seen. If however we continue higher look for strong resistance at 1326/27 and a selling opportunity. Exit remaining longs and try shorts with stops above 1330. Go with a break higher then with long positions targeting 1334/35 and possibly as far as 1340/42 this week for the next selling opportunity.

Failure to beat 1313/14 this morning may see a dip back to 1308/09. If this does not hold the downside we risk a retest of yesterday's low at 1305/04. Go with a break lower as prices should remain under pressure and target the 200 day moving average at 1297/96. Exit shorts and try longs with a low for the week expected.

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