Gold Breaks Below Key Support: Another Sell Signal?
2023.08.18 05:12
breaking below the only support of note this week at 1900/1895 for an important sell signal. The first target is 1870/65 but 1845/40 is not out of the question.
Gains are likely to be limited, despite severely oversold conditions in the 3-month bear trend. First resistance at 1896/99. Shorts need stops above 1902.
Very strong resistance in 1905/08. Shorts need stops above 1912.
longs at strong support at 2245/25 are working on the bounce to my first target of 2290/95. It now looks unlikely we will reach the second target of 2320/30, but if seen this should be a sell opportunity with stop above 2350.
Strong again support at 2240/20. Longs need stops below 2210. A break lower is a sell signal.
September break below 8150 on Tuesday was my sell signal & break below 8050 on Wednesday was the next sell signal targeting 7950/30.
Further losses can test strong support at 7830/00 today. Watch for a low for the day. Longs need stops below 7750.
However, the bounce went further than I expected beating resistance at 8030/50 before we quickly retreated, which was obviously frustrating. I still think this level could hold a rally today, but if we continue higher I expect very strong resistance at 8120/60. Shorts need stops above 8200.
