60 Minute Bars
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
Commodity Analysis : See Friday's weekly for analysis on gold . Near term resistance structure is clear with feeble bounce from the low probably composing wave 4 within a 5 wave decline from 1590.60. The implications are for a new low and perhaps a test of the 2011 low at 1307.45 before a reprieve from selling and move back towards 1404-1430 (which could also be a 4 th wave rally). Bottom line, the strongest part of the decline is probably over and declines from here will be in stair-step fashion (series of 4 th and 5 th waves).
Commodity Trading Strategy : It seems paradoxical but the structure of a market is most clean when that market is most volatile (more emotion=more structural clarity). Watch gold even if you don't trade it because a final low would probably be felt across other markets that also experience forced liquidations before yet another 'snapback' rally.
LEVELS: 1226 1265 1307 1404 1427 1460
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.