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21.09.2012 10:34 AM
Gold Is Offering Another Short Entry

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Technical Outlook and Chart Setups:

It looks like the yellow metal is preparing to go down towards 1720.00 level. Till the time prices stay below the highs at 1775/80 levels, expect a break down. As depicted above, gold seems to be carving out a wave 2 or a lower high before prices fall aggressively towards at least 1720.00 level. We recommend traders to remain/go short now since the risk reward ratio offered is better. Moreover, a break of the short-term trend line will instill further confidence towards downside.

Trading Recommendations:

Remain/enter short at current levels (1772.00), stop at 1785.00, target at 1719.00.

 

Good Luck!

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