Friday, November 30, 2012

Gold Weekly

Below is a weekly gold chart. The basis of the chart is the initial thrust from the 2008 low and January 2009 initial high pivot. Some observations.
  • the 3x2 fan line from the low seems to be the operative support resistance ratio.
  • the stars mark where gold has been supported by the 3x2 line.
  • gold dropped below the primary 3x2 line in April 2012 and declined to the 1st harmonic 3x2 below the primary 3x2--new support
  • the latest rally found resistance at the primary 3x2--new resistance: a further sign of weakness.
  • currently, gold is testing the harmonic 3x2 as it did earlier in the year. A break of this 3x2 harmonic would suggest lower prices--perhaps the next lower 3x2 harmonic.
  • Check out the first 3x2 rectangle--prices were relatively nearby the bottom right corner. check out the second 3x2 box--once again prices were close to the bottom right corner.


Anonymous said...

Very interesting. Does this imply the outlook for gold is bearish? Thank you in advance.

Fibocycle said...

I would say that the intermediate cycle has been down until it can close above 1800, which is the area of the last pivot and the major 2x3 trend line. A break of the current parallel red line (support) would suggest a decline to the next parallel 2x3 line.$1800 is the magic spot for now.

Anonymous said...

Interesting. Thank you.