Wednesday, August 10, 2016

Gold: About to take a break?

About a month ago we noted that "Currently Gold is in a resistance zone (1300-1400) and hitting 1/2 Gann angle from the recent bear market."(Gold in a resistance zone without any signs of weakness).

At that point gold was around 1370, currently gold is at 1350.
As you can clearly see from the previous chart gold is in a resistance zone and on top of that the ichimoku cloud is hanging over gold dangerously(monthly chart, see below) and a Gann resistance angle from the previous 2011-2015 bear market is at current levels(weekly chart see below)

We feel that gold will pause and correct in the near future.How much?A very plausible target is around 1260-1280(or even 1210)
Time will tell.
Happy trading!