Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
Commodity Analysis: After nearly retracing the entire 4/15 decline, gold reversed at the downward sloping line that connects the record high and February 2012 high (2/29/12 was a $105 down day high to low). That line provided support in late August 2012 (8/31/12 was $47 up day high to low) as well. If gold is headed lower over the next few weeks then it needs to stay below this line. Strength above would shift focus to the December 2011 low at 1522.
Commodity Trading Strategy: Short against 1500, for a new low, specifically the 2011 low at 1307.
LEVELS: 1405 1439 1448 1485 1495 1523