Gold has not been able to break 1697 and this has actually been the high. Now we are overbought, and the chart pattern evident is an upward waving flag....again a bearish patter...So we look today for the market to fall back and we should be able to reach 1686 without too much trouble..
Here we should see the sellers cover all shorts. We would also expect some buyers in here...however...any longs should be reversed if we lose 1683. A break below here would see the sellers back in control and we should then be able to reach 1677/76...again without too much trouble...
The only fly in the ointment would be a break above 1697...If occurs there could be a little flurry of short covering...but unless we break 1704 there is much more scope for the market to move lower...
I like Gold long term...and believe that any weakness to 1676 should be bought for eventual break of 1704.
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