DAX Head and Shoulder pattern
March 14, 2014
NIKKEI Bearish reversal
March 18, 2014

Gold has broken its short-term upward sloping trend line. This is the first short-term sell signal Gold has given since $1,355 top reversed to $1,328. Gold price has been in an upward trend for some time now so a pull back towards $1,350-40 could be justified to relieve the overbought oscillators.

gold

Gold has broken its short-term trend line and we believe it is heading towards the 38% Fibonacci retracement near $1,368. Gold has entered a short-term correction phase now that could push Gold price even towards $1,340-50 where the Ichimoku cloud support and the longer term trend line support is found. Short-term resistance is found at $1,388 and if broken we could see Gold price reach $1,400. For now we prefer to be neutral as this sign of weakness is important but the larger trend remains up so we should only look for buy levels with ultimate target of $1,500-$1,600.

As always, thank you for taking the time to catch up on my thinking.

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.