Rising channel resistance and 30-year Fibonacci expansion/extension levels were suggesting to harvest or hedge gold at $1,900 per ounce.(see post here) Gold hasn’t fallen hard since it hit this dual resistance point at $1,900, (around 10%), yet it did at least cause a pause during a sharp rally.
In August Gold stood in the mid $1,600 range and the target was $1,900. Now check out where gold stands 90 days later and the current pattern taking shape.
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Resistance line (2) is close at hand for gold and the bottom of support is getting closer as well. Gold looks to be creating a rising wedge and the wedge will be ending soon. Since 2008, line (2) has cause Gold to back off for a while…different this time around?
Many have used Gold at key resistance to take positions to score, by shorting Silver over the past few weeks and for some the gains of ownership by owning ZSL have been breath taking. I suspect more opportunities along this line will present themselves!
Robert…I would like to be a buyer of Gold on support as we were sellers at resistance.
Chris
on your chart gold did break resistance at line 2 and got to 1900.Do you think the odds of that happening again this year are pretty slim ?-Gold is kind of funny it that a lot of time it does the opposite of what it looks like it should do–
so i would assume a break over $1700 and if the dollar should rally up it would be a good short ?
Thanks,
Robert