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ali.se.18
May 29, 2014 6:58 PM

A correction is very likely Long

Gold/U.S. DollarFXCM

Description

After this overextended Short movements, it seems technically very logic that it will make a more or less upside correction move before deciding the following direction.

First Target: 1261
Followed by: 1272 - 1282 (1289 max.)
Comments
jago25_98
I'm not too familiar with RSI and CCI to be honest. I take it the RSI can't repaint it's straightening out section and then continue down and redraw the scale... right?
ali.se.18
Possible but this would need a very long time of sideways and neutral market process. The RSI would adjust by upside pressure or by staying long enough in a sideways market. If you look at the beginning of May until the break on tuesday it hold on a normal level. Then it falled very intensive. Such a fall has to be adjusted by a upside correction or sideways market. In consideration of the fact that ECB will decline the prime rate it would support the idea of a rising gold price.
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