ajtj99's Market Pulse

[Y worry Murray]

Justa, this may be of interest to you;

Gold
by the MarketWise Trading School

Most importantly, if you are still long gold going into Friday’s session following the 16.1 dollar decline, hold tight. Reasons will be explained later. On Thursday, gold prices saw its lowest level since November 26th after the Fed comments spurred bids in the dollar and pressured the commodity as a rate increase is viewed as positive to the greenback. Looking at the February contract (/GCG4) and the low on July 15th at 344 to the recent high of 430 on January 8th, a Fibonacci Retracement (38.2%) comes in at the 397 level. The contract closed at 398.5 and just above this level. Support. Then, using the low on October 17th at 368 to the 430 high, a 50% retracement comes in at Thursday’s close. Correlative support. Resistance above is seen at the 404 to 408 level, while support below the 397 level comes in at 391 and then 387. With that said, if Thursday’s low is taken out, look out. If the commodity finds a bid or consolidates on Friday, we could get a test back into the 404 -408 area.

Murray