Gold has been trading heavily over the last several weeks even after initially finding solid buying interest on the 61.8 Fib at 1198.86. Gold has now taken out a large number of stops below the 61.8 in thin trading conditions.
As you can see from the chart above the smart money have been selling every chance they got on the 1:1 (Pink) rallies.
Selling rallies going forward is the best play in my opinion with the next level to keep a close eye on the 1:1 (Yellow) and 50 Fib that coincide at 1197.40/75, this level will likely attract solid selling from the bears looking to target large stops below 1131.60.
* A 1:1 refers to a current correction being equal in length to a prior correction
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