06/03 — Harmer Report — Gold
Carol Harmer is a Redbox Trader
Gold did nothing yesterday…and today it is overbought !!….this is obviously on the 4 hr charts…So just a little bounce on Gold can make these indicators move….Dailies are at exceptionally low ground…on the stochastics…but the RSI is just bobbing along at just about the oversold level…and it really is a case of just wait and seeing what happens now…
I think it is all going to depend on whether we can stay above the 1282/80 support….If we can that will be good…If we cant then we are in for a rocky ride…Now the yearly low is at 1276…This is also a very important support…So this is what I would call the last line of defence….If we hold….there is a chance we can trade higher…If not and we take out these lows…then we rethink and the market will take this as a weaker sign and we will trade lower…
We are oversold though…and this is the one thing that is keeping me a little bit more positive about the market….Can we really take out the yearly lows at these severely oversold points… The DP is at 1285…currently we are above that…We stay above that today we are looking at 1292 to 1293…This is
the short term 23.6 Fib and also the R2…so this should be a level that will entice us higher….
The market is poised to do something…It is just a case of what it is poised to do….It has come a long way down from the 1346 highs..I never rule anything out…It is just that Gold is failing at slightly lower levels when it gets up above
1324….and that is a concern….
