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TFC Commodity Trading Forum

Dec Gold/ At Support *PIC*

Dec Gold tagged price resistance at 1800 in classic fashion and pulled back to 1700 price support. This is also the Fib 38.2% retracment level. Price action over the last few days has found 1700 as support. The CCI 20 has also tagged the very oversold zone of -200 which suggests a bounce back on the short term. Price could just bounce back to the downtrendline and not change the downtrend. Price must clear the downtrendline to change the trend to up again.and suggest another run up to 1800 resistance for a double top. With DX bumping up against price resistance and pulling back sharply Friday inverse markets could easily bounce back from support levels on many markets with DX pulling back in its 2 point channel. Only a sold break and close below 1700 with Gold would suggest lower prices to 1680 or even all the way to 1633. Bottom line for more significant price moves: Watch for a breakout of the downtrendline or a break below 1700 for significant price direction. A breakdown and selloff to 1633 would be a great buying opportunity technically as it is the major support level and a Fib 61.8% retracment point which Gold historically respects plus was the major breakout point in August from the multi month consolidation pattern. And another thought: with Gold presently at the 1700 level the1633 major buy point is still only 78 bucks away from Friday's close. Time to pay attention to present levels.