Will the golden reversal signal work?
According to the World Oil Ounce weekly chart, the December 11, 2016 floor price of $ 1122.88 would limit the downside of the market after five months, and saw gold entering the long-term bullish channel. The gold price rose further after entering the ascending channel, with the market breaking the price high of 2017 (1357) and reaching the resistance range of 1365-11375. This range will appear in the form of resistance three times in 2016 and will also include the peak in 2016. In the last week of January, the resistance range prevented the upside movement from triggering the market down the channel’s price floor after one year and four months and defeating a new downtrend of $ 1,160.
But it turned out that the deflection of the price floor in 2013 was fake at $ 1,180, and the global gold back after the low floor price of $ 1,160 returned to the 1200-1215 range. It can be said that the gold market is fixing the downside starting at $ 1,365 to $ 1,160. In the last week’s trading, ounces of gold in response to the 38.2 percent Fibonacci retracement at $ 1,235 was hit by sales and collapsed with a downtrend of around 23.6 percent Fibonacci. This cushion cover completely covers the body of the previous three buckets.
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If the ounce of gold hits a hood and will continue to fall below the $ 1235 resistance below the $ 1,200 Rand, then the market could reach 1180 and 1160. To continue the bearish trend starting at $ 1,365, the ounces of gold should fall below $ 1,160.
In contrast, if the ounce of gold is backed by a 23.6% Fibonacci retracement, then the market could return to resistance at $ 1,235. If the resistance of $ 1235, along with a 38.2% retracement of Fibonacci, is definitely broken, the ounces of gold could reach $ 1,265.