December gold has major resistance at $1800.00 an ounce. in the last 3 weeks, we have seen gold drop $80 bucks and ounce or 5% of its value. Technically, there is an old gap, back at 1694 which we are within 30 bucks of hitting. That should be a target well within the reach of us withing the next 5 trading sessions. If the bears can squeeze all the gold bugs out, we might get a chance to buy gold down around the 1545 level, which is our 3-month low, and the bottom of our trading range Looking at the chart, we have support at the $1,495 And major resistance at $1,800.00 We did spike up in may to 1904 on a head fake for the bulls. but that was short lived.
This gives us roughly a $400.00 trading range, with 1,702 the mid point 50% retracement. A failure at that level, opens up the door for a run down to$1,650 and the $1,542.. I realize those are pretty wide downside targets, but this reflects the trading range we’ve been stuck in for the better part of the last 12 month.
CER
