Gold shorts at 4.5 year trend line resistance at 1292/94 worked perfectly. All targets as far as 1283/82 hit & we bottomed a fraction below. Bulls won’t give up easily so watch for the bounce today & a second selling opportunity in the 1290/95 area. We have further short term trend line resistance at 1301/02 so it is only a clear & sustained break above here that signals a very bullish breakout. I would wait for at least 1 daily close above here for bullish confirmation before buying in to longs – there is of course always the risk of a spike higher to trigger stops at such a major level before prices collapse. If a sustained breakout is seen however we have the first confirmation that Gold is starting a longer term bull market.
Below 1280 keeps the pressure on for a test of good short term support at 1272/71 where we are likely to be oversold short term & so our first bounce is expected. (It’s worth keeping a core short position – but for a quick 10 point scalp you could try small longs here with stops below 1266.