Following up on my previous option play on gold, the market has found some resistance at $1240. We have seen several small retracements, however they have all been met with dip buying and once again we are knocking on the door of $1240. Its seems that the pressure is building and I would suggest entering long positions on a breach of that figure with a view to taking profits circa $1267.50 (50% fibo retracement). At this level one would expect to see the RSi strecthed in the short term so a pull back would give us the chance to re-enter longs should we pull back towards the $1240 (resistance turned support) marker
