Tanalys

Gold Retraces Monday’s Rally; 1156 is an End of Year Target

Daily

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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-A bearish Nov has given way to a sideways Dec. Near term pattern remains bearish however. Rallies are in 3 waves (suggests correction) and declines are in 5 waves (suggest impulsion).

-Beyond 1180, the Jul 2010 low at 1156 and perhaps the 2010 low of 1045 become of interest. The former level is in line with a short term measured objective of 1055. The latter level is in line with the 2008 high at 1033.

Trading Strategy: Short, stop 1270, target 1160 (1211 – (1267-1211)) = 1155

LEVELS: 1180 1208 1224 | 1246 1262 1269

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

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