Credit Suisse recommends to sell Gold at $1130

We have been long-time bears of Gold and it was one of our core thematic trades for 2015 (c.f. Technical Analysis Global outlook 5th Jan 2015). The metal overnight broke sharply below the November 2014 $1131 low. This confirmed what appears to be a bearish “triangular” pattern, and has seen a test of the 50% retracement of the 1999/2011 rise at $1087. While it is unable to follow through below here directly, we stay bearish and expect it to be removed in due course, to then challenge price support at $1044/33 next, ahead of price/psychological levels at $1006/00. We would expect an effort to bounce here, but if removed would then look on to pattern targets at $956 with scope to the 61.8% retracement level at $890. Resistance moves to $1131/43, then $1153 with $1200/06 expected to cap.

Trade: Sell at $1130, stop above for $1175 for $956.

The post Credit Suisse recommends to sell Gold at $1130 appeared first on www.forextell.com.

Leave a Reply