As off my last chart It seems I was almost right. I prodicted gold would trade in a narrow band before reaching 1250 midd week and falling at end of the week( Last week in June). After which buyers could take action one way or another. In my view a fall was always going to happen. I must say it is plain bad Analysis to have assumed that 1240 was the base.For two reasons. One: 1240 was still quite high of trend line .Two: gold had no reason to go up. It indeed seems that buyers have taken action .As I foresaw price of gold dropped $20 today. And has extended its drop beyond the trend line by $6 or so. I see a further drop of another $5 to settle around the the 1215 mark. I do not see a drop to 1208. A drop to 1208 I feel would be an over drop .Buyers are not likely to break support to this level. However should it, then it would show the rise of confidence in other markets .
My buy in target was between 1229-1235 and would be to buy in now. Long till 1265.From 1265 to 1285 .As gold has been so volatile and has broken the trend line, I believe we will start seeing a shift . I do not believe we will reach 1300 this year. I think we may only get to around 1285 on the rebound/correction . In my general experience when a trend line is broken in such a manner it can only spell lower highs as well as lower lows. Having almost reach Mays low of 1217, it would be important to track the price, as bullish buyers may come in, in an attempt to support the 1220 mark for the already discussed reasons.
It is important to monitor the price behavior when reaching 1229.32, as breaking it will extend the correctional bearish wave to reach 1208.92, while the negative pressure will remain dominant unless the price managed to breach 1254.56 level and holding above it. However I do believe golds natural correction cycle will come into play between 1215.
My buy in target was between 1229-1235 and would be to buy in now. Long till 1265.From 1265 to 1285 .As gold has been so volatile and has broken the trend line, I believe we will start seeing a shift . I do not believe we will reach 1300 this year. I think we may only get to around 1285 on the rebound/correction . In my general experience when a trend line is broken in such a manner it can only spell lower highs as well as lower lows. Having almost reach Mays low of 1217, it would be important to track the price, as bullish buyers may come in, in an attempt to support the 1220 mark for the already discussed reasons.
It is important to monitor the price behavior when reaching 1229.32, as breaking it will extend the correctional bearish wave to reach 1208.92, while the negative pressure will remain dominant unless the price managed to breach 1254.56 level and holding above it. However I do believe golds natural correction cycle will come into play between 1215.