SINGAPORE: A bearish target at $1,307 per ounce has been established for spot gold, based on a double-top that formed around $1,354.
The pattern suggests a reversal of the uptrend that rose from the Dec. 31, 2013 low of $1,184.50. So, a previous target at $1,377 has been aborted. The neckline of the pattern is around $1,330, so it could be strategically safe to target $1,307 when gold slides further to $1,328.
Resistance is at $1,341, a break above which will make signals neutral. Only a further gain above March 3 high of $1,354.80 could signal an extension of the uptrend.
The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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