Gold markets fell a bit during the Monday session as the markets continue to be somewhat tepid as far as risk taking. The $1,650 level just above looks like it is trying to become serious resistance, and will more than likely give the bulls a fight in this market. The $1,550 level below has shown itself to be supportive in the recent past, and as a result it looks like we are heading into consolidation.
With that in mind, we are simply going to wait before we add any to our gold position for two specific events: Either we get a daily close above the $1,650 level, or we get supportive candles on the daily chart closer to the $1,550 level. In the mean time, we aren’t selling this market even if we do believe that it will grind a bit lower over the next few days.
Gold Forecast January 10th, 2012, Technical Analysis
Originally posted here
