Gold Technicals
Summary
- If gold doesn't close above ~1875, then 1750 is likely.
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In our Dec. 19/20 article, we wrote the following:
In the short-term, there is room for the momentum indicators to move higher, but there is resistance at ~1900 and then at ~1960. If that resistance can be overcome, then new highs are likely. But if not, 1750 becomes a possible target (chart below).
As predicted, gold rose up to the 1960 resistance and subsequently turned down below the descending channel line and is now at support (~1840) provided by the 38% Fibonacci retrace of the March to August rally (updated chart below).
We pointed out that if 1960 was not exceeded, then 1750 became a possibility. The chart below takes a closer look.
We now have the situation where the momentum indicators have some room to the down side. If gold doesn't bounce from here and close above 1875, then it is likely to test 1750.
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