GOLD ready to break or more delay ahead?

S&P false breakout or shallow correction?
February 5, 2013
What are the critical levels for the US indices?
February 6, 2013

gold

Gold continues to trade within the triangle after the top at 1800$. This sideways movement is most probably a correction due to the overlapping pattern of the price movement. The most important price level that we should keep our eyes on is the 1700$ level. If prices move above that level, it is most probable that prices will rally towards 1800$ again. That price level will be another strong test for the up trend. We believe that given some time, Gold we rally past those resistance levels and reach above 2000$. The expected upward move however could delay. Resistance at 1685-96$ has proven twice too strong for buyers to overcome. Therefore we might see a down move towards the lower side of the triangle and the 1600-20$ price level. This could be our last chance to buy ‘cheap’. Trying to guess a bottom however could prove too risky and its advised to better wait for a .

Thank you for taking the time to read my post.

A price movement through an identified level of support or resistance, which is usually followed by heavy volume and increased volatility.

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.