Bullion Weekly Technicals 22 July 2013

Gold – Daily Chart

Looking for failure ahead of 1339/1343 – top of the 2 month channel and 55 day ma

Gold remains upside corrective short term and has reached the 1321.50 April low. It has executed a 23.6% retracement (1325.50) of the move down from the October 2012 peak. Directly above lies the twin perils of the top of the two much channel at 1339 and the 55 day moving average at 1343.
We should ideally see the market fail here, in which case another down leg towards the current July low at 1208.08 and the 1180.04 June low will soon be underway.
Failure at 1180.04 will open the way up for the 1162.45/1145.25 significant support zone to be targeted. It contains the January and March 2010 highs, July 2010 low and the 61.8% Fibonacci retracement of the 2008-11 up trend.
Above the 1343 55 day ma would alleviate immediate downside pressure for a deeper retracement to 1415/1424.05 – the June high and the 38.2% retracement of the same move.
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