Gold has again failed to take out a number of large stops that are likely sitting just below the 61.8 fib level at 1130.00. The market is now seeing some short covering after another failed attempt.
The market has now overbalanced the largest correction in the current down trend, this is an indication that this medium term down trend has possibly changed.
I will be looking to buy into the 1:1 (White) and 38.2 fib at 1169/70.50, with a tight stop below 1166.80. My initial target will be Friday nights high.
* A 1:1 refers to a current correction being equal in length to a prior correction
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