Gold March 6 Daily bull/bear pivot zone =1578-1582 (ideal 1578.50)
Weekly bull/bear pivot= 1580-1584 (ideal 1580)
Daily resistance is 1586-1588 and 1593-1596
Gold has Support on Wednesday at 1566-1568 and 1571-1573.
It looks like a rally towards 1592-1595 is trying to set up
Gold spent the morning climbing steadily, lifted by solid physical demand out of Asia, a rebounding oil price and a weaker dollar to hit an intraday high of 1586. However, the market has sold off since the release of stronger than expected economic data from the US and the Dow hitting a new all time high to currently trade around 1575.
Gold continues to build a base above 1550 - the recent price action suggests that the selling is over for now and it is now just a matter of time before confidence returns to lift gold higher. The massive speculative short position provides the fuel for a potentially enormous rally, which is just waiting for a spark to start it off.
Although we find the prospect less and less likely each day, we cannot discount the potential for another sharp sell off that would see the market test the 1525 level or maybe even dip briefly below, taking out all of the buy stops that are known to be sitting there. A break of support at 1554 would indicate that this is the most probable outcome, So our stop remains well placed just below this support area.
The market has been stopped 3 times now on the daily chart by the 1585-1587 resistance area, it is important that gold breaks through this area soon to avoid the prospect of the potential slide becoming more of a danger.
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GOLD CURRENT TRADE
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GOLD CURRENT TRADE
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Our Position
Bought 1Apr Gold on 28/02/2013
Bought 1Apr Gold on 28/02/2013
Entry: 1577
Stop Loss: 1552
YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
Do your own due diligence.
No one knows tomorrow's price or circumstance.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
King Regards
