Gold has now consolidated between $1170 and $1145 for the last four days. It is also fifteen trading days since the March 24th interim low. March lows and April breakouts typically see mild corrective lows after 13-18 days from the late March low and then around 19-21 days. Look for strength now with a possible re-test of support next week or a small undercut as seen at March 24th vs March 9th.
A subsequent breakout point would launch the price to a likely range of $1236 to $1290 by late May - early June. A violation of $1120 would be outside the parameters of a normal correction and warrant a reduction in trading positions.
(Click on images to enlarge)
Arrows identify a 15-day period from the mid-late March low
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