Gold price has been moving sideways since October 5th around the 38% Fibonacci retracement and the important $1,250 support. Is the entire correction over at this level or just its first part? A bounce towards $1,300 is expected. My longer-term view remains bullish.
Red lines - triangle pattern
Price is trading around $1,250 in a triangle pattern. Soon we will have a breakout towards $1,220 or $1,280. Resistance is at $1,260 and support is at $1,242. The lower this decline pushes price, the better for bulls as I believe that we are in the process of creating a new low as important as $1,045 is.
On a weekly basis price has broken above the Ichimoku cloud and the rise was halted at the downward sloping trend line resistance from its all time highs. Price is now backtesting the Ichimoku cloud support and is now at the 38% Fibonacci retracement. I was warning that a break below $1,300 will push prices towards the cloud support. My longer-term view remains bullish. We can either start a new up trend from current levels or we can bounce to $1,300 and then make the final correction towards $1,200. Time will tell. We need to be patient.
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