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24.09.2012 10:39 AM
Gold At Critical Levels. A Break Of 1755.00 Levels Will Accelerate Downside.

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Technical Outlook and Chart Setups:

We fell just short of the last spike in yellow metal before reversing from 1787 level. Nonetheless, our expectations of a sharp selloff have materialized and one can see a rising wedge formation being broken. At the moment, prices are testing the short-term support line passing through 1760.00 level, and a breakdown here would accelerate downside towards 1700/20 levels at least. Moveover, a huge retracement towards 1640/50 level also cannot be ruled. We favour short positions for now.

Trading Recommendations:

Stay short if not stopped out, re-enter short positions, stop at 1790.00, target 1720/00.

 

Good Luck!

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