Gold Technical Update
Gold as seen testing an important support just above 1700 last on Friday 12/9. It eventually broke below, which means a break of a triangle and support pivot. The swing projection seen in our previous report was to 1628, and the market continues to open up to that target. Below 1628, we open up the 1600 psychological support.
Looking at the weekly chart which has a the fibonacci retracement levels for the 2011 rally, we see that below 1600, we open up 1542.38 (61.8% retracfement, near the lowest point of our current correction). A swing projection shows a loner medium term projection that just goes beyond the 78.6% retracement at 1439.52, which is also near the 1428.50 pivot, which was resistance during Nov 2010, Jan 2011, and briefly in March 2011 before extending to record highs again. This would be the maximum bearish projection at this point for gold's corrective decline.
Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.