On September 19 I wrote, “we can’t expect another huge move after yesterday’s rally, as the market will likely digest the recent move and trade in a smaller range…For today’s market, watch the outer boundaries of the current range, which spans from 1358 to 1375.”
As we expected, Gold digested Wednesday’s gains during Thursday’s session, trading in a smaller range from 1358 to 1375 throughout much of the day. After compression, you get expansion. After price expansion, you get compression. Right now, Gold is compressing ahead of the next move.
The 60-minute chart shows Gold is holding between 1350 and 1380, which are both key levels. I expect further range-type movement within this price zone before another breakout move occurs. The fact that Gold rallied so far so fast leads me to believe there might be a pullback ahead, likely back toward 1335. Watch 1350 for early cues. A break beyond 1380 opens up a test at 1400.
Short term, use 1360 as the day’s early pivot for directional bias. Below 1360 suggests ADR bear targets at 1352.80, 1345, and 1337.20, and above 1360 has ADR targets at 1367.70 and 1375.50.
| PivotBoss Levels & Targets: Gold (GCZ3) | |||||
| Fri, Sep 20, 2013 | |||||
| KEY LEVELS | ADR TARGETS | ||||
| 1,400.00 | PGM LVL | ADR (10) | ONH | ONL | Range |
| 1,391.70 | CVPOC | 31.2 | 1,368.40 | 1,352.10 | 16.3 |
| 1,380.00 | PGM LVL | AWR (10) | WH | WL | Range |
| 1,375.30 | PD High | 57.70 | 1,375.40 | 1,291.50 | 83.9 |
| 1,369.10 | SETTLE | ||||
| 1,367.20 | RTH MP | DAILY TARGETS | WEEKLY TARGETS | ||
| 1,367.00 | ETH MP | BULL | BEAR | BULL | BEAR |
| 1,365.20 | VPOC | 1,391.10 | 1,352.80 | 1,349.20 | 1,332.13 |
| 1,359.00 | PD Low | 1,383.30 | 1,345.00 | 1,334.78 | 1,317.70 |
| 1,356.00 | PGM LVL | 1,375.50 | 1,337.20 | ||
| 1,350.00 | LVN | 1,367.70 | 1,329.40 | ||
| 1,340.00 | PGM LVL | ||||
| 1,327.00 | HVN | ||||
| 1,316.50 | PGM LVL | ||||
| 1,306.00 | PGM LVL | ||||
| 1,300.00 | LVN | ||||