GOLD Weekly
Gold continues to trade on the heavy side with traders now pushing for large stops that are likely sitting below the 61.8 Fib at 1130.00, this level offered solid support back on 02/11/14.
A break of this 61.8 fib opens up the door for a much larger correction to take place, with the next support not until the Wave 5 (Green) which is equal in length to the Wave 1 (Green) and will complete this major Elliott Wave cycle.
GOLD H4
Looking at the medium term trend you can clearly see that the gold bears have been selling every 1:1 correction in recent times as they push for stops below 1130.00.
GOLD M15
Selling into strength on the 1:1 (Yellow) and 23.6 Fib at 1174.50/75.50 offers an excellent risk/reward trade in my opinion for traders looking to target stops below 1130.00. The stochastic is also overbought territory adding weight to the resistance level.
* A 1:1 refers to a current correction being equal in length to a prior correction
ABOUT REECE MARINI
Reece Marini is an FX trader and Director of the http://forexhft.com an instant Forex rebate and Signal provider, if you would like to subscribe to our daily reports you can do so here its FREE
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