Tanalys

Gold Could Get Interesting for a Turn Slightly Lower

Weekly

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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Commodity Analysis: I’m looking for a ‘tradeable low’ in gold between 1220 and 1265. 1265 is the June 2010 high. 1250 is the extension from 1523 of the 1523-1796 range. 1220 is the 161.8% extension from 1322 of the 1322-1488 range. 1227 is the November 2009 high. There are clusters of levels at 1155 and 1045/80 as well. It’s been gold’s tendency since September 2012 to ‘crash’ for 2-4 weeks and consolidate for at least a month. This week would be week 2 of this ‘crash’.

Commodity Trading Strategy: Looking for a low this week between 1220 and 1250. Given current market conditions, a turn would probably occur with the SP 500 (watch 1550), and the AUDUSD. I’m looking for ‘tradeable lows’. These are lows that lead to sharp advances (‘snapback’ rallies) but not the end of trends.

LEVELS: 1156 1220/27 1250/65 1297 1308 1316

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