I mentioned the importance of the 1:1 (Yellow) and 23.6 Fib that coincided at 117450/75.50 in yesterdays report.
Gold tested this level and began to sell off almost immediately with the market closing 85 ticks below the 1:1. Traders have continued to sell gold throughout the Asian session taking out the overnight low with the market now 140 ticks below 1175.50.
Gold is now seeing some profit taking kick in on the S2 support level. Now would be a good time to move stops to break even and look to take some off the table.
* A 1:1 refers to a current correction being equal in length to a prior correction
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