Mid-Week Update- Gold Nearest Futures- Sep 13, 2017
Gold Nearest Futures
We have witnessed a sharp turn to the downside the first 3 trading sessions this week, and despite closing last week above minor resistance, we can now see why 1357.7 was rejected with the high last week being 1362.4 and closing of 1351.2. We warned in our weekly update of the possible importance of 1357.7 being rejected, and was a warning that the market was not ready to run away to the upside. The market is now on the verge of a major turning point having witnessed a daily close below 1331 support from last week. We must focus in on critical support sitting at 1321.3 for tomorrow and Friday. Producing a daily close below 1321 and a weekly close below 1331 would be confirmation that the highs for the year are likely in place and we would have a weekly isolated high in place. This is the optimal type of high we like to see when major highs and lows are produced, so it is now favored that the highs are in fact in place. It is also now favoring the October 2nd weekly timing convergence producing an initial low, and producing a high here in September now allows the market to trade lower right into December. If we do in fact favor close below 1321 on a daily timeframe and 1331 on a weekly timeframe, we would anticipate a sharp move to the downside to the 1260 zone almost immediately where major support has formed.