Tanalys

Gold Gets Slammed as Former Low Holds as Resistance

Daily

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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Gold reversed course (again) after trading into a series of lows from Nov. I wrote yesterday that ‘if a low is in place, then Friday’s close at 1229 should provide support’. The market is below that level as I type. Action since 11/21 may simply prove to be consolidation before a year-end plunge to YTD lows.

-Beyond 1180, the Jul 2010 low at 1157 and perhaps the 2010 low of 1045 become of interest. The latter level may be one that inspires a significant reversal as the 2008 high is at 1033. In general, the 1000 area was a ceiling for several years and may be the new floor but probably not until 2014.

Trading Strategy: Flat

LEVELS: 1180 1208 1223 | 1241 1251 1262

— Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com

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