Gold Resistance from 1615 to 1630

By Jamie Saettele, CMT, Sr. Technical Strategist

Gold has broken below a major trendline that extends off of lows in 2008, 2010, and 2011. Focus is now on the December low at 1530 and then support from May 2011 and resistance from December 2010 at 1450/80. 1615/30 is resistance. The break is valid against the May high of 1675. Manage risk on shorts carefully down here as the probability of sharp spikes increases as price approaches the December low. Ideas: short, stop 1675, target 1530 http://www.dailyfx.com/forex/technical/elliott_wave/gold/2012/05/10/eliottWaves_gold.html