Tuesday, December 20, 2011

Gold ~ Update ~ 20 December 2011

The medium-term uptrend was broken when gold fell below my support level at 1680. A sharp sell-off followed and a few days ago we almost hit the September lows again:

As you can see also the long-term uptrend is in danger as gold broke below the orange support line. I won't short gold though. Generally, I prefer to go long if we hit support levels/trendlines (with a stop a few bucks below it) and not to go short if we break it because very often you get a false break below the trendline (especially now since we have a strong support level at 1550ish so the risk/reward isn't that good).

Support levels are at ~1550 and 1430ish. Resistance is at 1670-80.