Tanalys

Gold Nearing Previous Floor; Watch Out Below if it Breaks

Weekly Bars

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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Commodity Analysis: Gold took a hit today and the bearish triangle pattern possibility is out the window as gold traded below the February low. It’s obvious that gold is at a huge point in time. A drop below the 2011 low (1522.50) could send price cascading much lower as years of built up longs at bad prices are forced to liquidate. Areas of interest in the event of a break are the areas of 1400 (100% extension and 2010 consolidation), 1300 (127% and 2011 low), and perhaps even 1150ish (161.8% and July 2010 low).

Commodity Trading Strategy: Pending

LEVELS: 1400 1500 1522 1576 1589 1608

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