Allot of people have been calling our current pattern as a clear indicator that gold will break out to the up side?However I don't think so. Iv never seen a break out look like this before.
With very strong markets, I highly duet we will see much of a break out to anything past 1224. Yellen's speech has had some impact but not a great impact. A strong S&P 500 and recovering dollar on the back of strong data to be realised today will spell a downtrend for gold.
I think we will be testing ..breaking and re testing the 1219 area for most of today. .1219 being a strong resistance area ! The general pattern I have identified is as follows : up by $5, down by $6-$8 side ways trade,Up 8 dollars down $10-$15.
By day end trading assuming data is strong today on the back of a recovering economic condition's and increasing strength of data,tronger dollar and strong S&P 500...I would expect to close today around 1205 or bellow .
Should the data coming out today be week...we could see testing and or breaking of 1229.30
With very strong markets, I highly duet we will see much of a break out to anything past 1224. Yellen's speech has had some impact but not a great impact. A strong S&P 500 and recovering dollar on the back of strong data to be realised today will spell a downtrend for gold.
I think we will be testing ..breaking and re testing the 1219 area for most of today. .1219 being a strong resistance area ! The general pattern I have identified is as follows : up by $5, down by $6-$8 side ways trade,Up 8 dollars down $10-$15.
By day end trading assuming data is strong today on the back of a recovering economic condition's and increasing strength of data,tronger dollar and strong S&P 500...I would expect to close today around 1205 or bellow .
Should the data coming out today be week...we could see testing and or breaking of 1229.30