Spot gold biased to fall to $1,268.24

26 May, 2014

SINGAPORE: Spot gold is biased to fall below a wedge towards its April 24 low of $1,268.24, as it has approached the lower trendline of this pattern after failing to go above the upper trendline.

The pattern is contracting to a point, indicating a good chance of a break below the lower trendline very soon. Strategically, the target at $1,268.24 will only be confirmed when gold drops below its May 21 low of $1,283.

A rise above $1,304 will confirm the pattern to be bullish, pointing a target at $1,330.

The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice.

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