Gold Price : A Break Below 1200 Is Another Sell Signal

London (Nov 15)  Gold heading for first resistance at 1231/32. We should struggle here but in oversold conditions a break higher does look possible and targets 1237 then strong resistance at 1241/42 for profit taking on any longs. There is a good chance of a high for the day but shorts need stops above 1246. We then run in to even stronger resistance at 1250/51 for an excellent selling opportunity. Try shorts with stops above 1258.

There is a risk we trade sideways for a day or two to ease oversold conditions. Failure to beat first resistance at 1231/32 (or yesterday's post open high at 1228) targets 1224/23. Below look for 1219 then 1216. Again very strong support at 1210/08 is the best support for today. Longs need stops below 1200. A break below 1200 is another sell signal and losses could accelerate below here as longer term stops are likely to be triggered by funds.

Source: Investing.com