SINGAPORE: A bearish target at $1,176 per ounce shall remain intact so long as spot gold hovers below a resistance at $1,203.
The resistance is at the 23.6 percent Fibonacci retracement on the fall from the Aug. 28, 2013 high of $1,433.31 to the Nov. 7 low of $1,131.85.
The rebound to this barrier could be regarded as an overdone pullback towards the lower trendline of a big triangle, which has almost been confirmed as a bearish continuation pattern.
A break above the resistance will open the way towards the 38.2 percent level at $1,247. But most likely, gold could drop towards the support at $1,176, the 14.6 percent level.
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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