Commodity Chart Of The Day
(click image to enlarge)
Gold has gained 10% in the last two months, but in the short run, I do not see prices able to maintain levels near $1700. As you can see from the chart, we've completed a 61.8% Fibonacci retracement around that level in the December contract.
Though I am bullish in the coming months, I think in the coming days to weeks, we see prices correct lower. Use the Fibonacci levels as your exit targets on any bearish plays. As one can see, prices on this contract can trade back to $1615/ounce without doing any near term chart damage.
I would be an aggressive buyer for clients given the opportunity to be a buyer on a 4-6% correction, as I do see prices above $2000/ounce into next year.
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.