Bullion Weekly Technicals 16 September 2013

Gold – Daily Chart

Our first downside targets have been hit but the 1200/1180 region remains in focus

In the past couple of weeks the gold price has reasserted its downtrend and has so far hit the 50% retracement of the June-to-August rally at 1307.04 and nearly also the 50% retracement of the 2008-11 advance at 1301.12.

Both of these should be fallen through this week with the 1272.56 August low then being targeted.

Failure at the 1272.56 August low will confirm that another interim top has been formed.
In such a scenario the 1200/1100 region will be back in play as well.
Only an unexpected rise above the 1434.05 August peak would void this forecast and target resistance at 1487.62/1488.17 instead.
Resistance now comes in around the 1350 level and along the breached support (now resistance) line at 1365.
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