We are seeing a follow through to the break of the symmetric triangle in Gold from the past weeks consolidation as tensions in the middle east continue to ease. Speaking on the Israeli retaliatory attacks Friday, Iran’s Foreign Minister has indicated that there are no plans to respond with market taking this as catalyst enough to take on the range floor for the past two weeks.
Resistance
- 2372.01 – Minor: Intraday Consolidation Floor
- 2354.82 – Minor: Intraday Consolidation Floor
- 2318.03 – Moderate: Two Week Range Floor (Breakout Point)
Support
- 2266.39 – Minor: Intraday Consolidation
- 2223.80 – Minor: Previous High/Low
- 2197.77 – Moderate: Previous Range Play Resistance
We are looking for a daily close under 2318.03, two week range floor, to signal further weakness for Gold. At this point we would adopt a sell on rallies stance coming off the breakout point or on a renewed drop pushing through the lows. Any sign of increased geopolitical tension would be a cause to close any sell trade.
