Gold Will Shine Again

Gold is trading around $1,250 which important Fibonacci retracement of the rise from $1,045 to $1,375. I remain long-term bullish and I have also been warning that Gold would be in danger of a deeper pull back if $1,300 was lost. Price is now at an important support level and a bounce towards $1,300 is expected.

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Gold price is in a corrective phase and could very well bounce to $1,300 and then come back down to $1,200-$1,170 to complete the correction. Or it can very well start a new uptrend from current levels. We will focus on the form of the price action and if we see an impulsive rise we will have more chances of a longer-term upward reversal. The decline in Gold is what I believe to be a wave 2 correction that will be followed  by a strong upward move that will eventually break above the long-term downward sloping trend line resistance that price got rejected at $1,375.

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Price could eventually pull back towards the weekly Ichimoku cloud and the 61.8% Fibonacci retracement. This would be a gift for bulls. I’m already long NUGT and will be looking to add to this position.

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With a downward sloping wedge pattern and oversold oscillators, the price is now trading at the lower wedge boundary and expected to bounce strongly from current levels. A break out of the wedge will signal that the reversal has started.

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Chee Hin Teh 7 years ago Member's comment

Thanks for sharing