Gold has topped at the important resistance of 1420-30 and is now turning lower. Gold has broken out and down of the upward sloping channel from 1270. If you follow our analysis through our cooperation with InstaForex, you will have read that our view turned from bullish to neutral once prices reached this important resistance area. We exepected that this upward move that started at 1270 was nearly complete and that it was time for Gold prices to pull back down. The correction we expect in Gold prices targets 1370 where the 38% Fibonacci retracement is.
We expect Gold to test the upward sloping trend line from 1180. We expect prices to test the trend line near 1350. Short term support is found at the 1370 price level where the 38% retracement is. We are bearish with 1430 stop. Short term resistance is found at 1410 and at 1425. Short term support at 1390 and then 1380.
Prices have broken the short term support at 1412 and 1400. We believe that this downward move will continue at least towards 1370 where we can take partial profits. Until then we have the recent highs as stop for our position. For more help trading Gold, become a subscriber today.
As always, thank you for taking the time to read my new post.