Gold’s recent slump could have much further to run, with a breach of its April low at USD 1,322 potentially setting up bigger losses towards levels not seen since mid-2010, chart analysts say.
Since posting its biggest two-day loss in 30 years last month, bullion has struggled to recover, and last week suffered its longest string of daily losses in four years.
With April’s low again looming, a breach could spark a significant move lower, according to analysts who study past price moves to determine the future direction of trade.
“If that gives way, it will attract fresh selling pressure. That impetus could see it break below USD 1,304 and down towards the USD 1,161 area,” UBS technical strategist Richard Adcock said.
“It’s a break of that point that would pressure longs further, triggering more selling pressure as we start to see long-term longs close down, and people initiating short positions again.” Read more... http://tradingtipsfree.wordpress.com/2013/...eyes-on-1100oz/
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