Gold's Short-Term Weakness And A Pullback
Alexandros Yfantis | Mar 17, 2014 10:22AM ET
Gold has broken its short-term upward sloping trend line. This is the first short-term sell signal Gold has given since the $1,355 top reversed to $1,328. Gold price has been in an upward trend for some time now so a pull back toward $1,350-40 could be justified to relieve the overbought oscillators.
Short-Term Correction
Gold has broken its short-term trend line and we believe it is heading toward 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.
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