Gold (Z) 8/16/17
On a macro basis: On a lower timeframe, we are currently in a correction against the move up from 12111 that started on 7/10. The maintained gap higher on 7/18 left a medium term bullish reversal intact below that warned of higher trade for days. We have seen $59 of this so far from (Q) into (Z) with a roughly $7 spread differential, but this is on hold. The solid penetration above 12417-21 warned of solid short covering in the days/weeks ahead, with a good likelihood of a run back up toward 12980 (+). We have seen $56 of this so far, taking out 12980 Friday; but this is on hold as well. On a shorter-term basis: The maintained gap lower yesterday left a the short term bearish reversal above warned about that warns of decent profit taking, likely for days. Decent intra day trade above 12856, or a settlement above 12886 will negate this. Trade above 12978-88 is a sign of continued strength; but if we break above here and back below, look for profit taking to come in. Trade below the 12727-10 area is a sign of continued weakness.
Read more by MarketSlant Editor
