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Gold Spike Lower Makes Turn Difficult to Trust

Daily Bars

Prepared by Jamie Saettele, CMT

"Gold has entered a zone that may be difficult for bulls to penetrate. The zone is defined by the 12/21 high and 200 day average on the low end and 11/21 low and September-November trendline at 1672/90 on the high end." I wrote last week that "today's turn may be the beginning of the next bear move but these up moves tend to continue on empty. A drop under 1630 would be enough to signal the beginning of the larger decline. Until then, be wary of a bear trap." Gold dropped below 1630 on Friday, albeit in a spike. Violation of a level in a spike is difficult to trust so the bear trap potential remains.

Bottom Line - short against 1675, target new lows

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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