Gold Resumes Bearish Bias towards Downside Targets
James Chen March 8, 2013 7:20 PM
<p>Gold (daily chart) as of March 8, 2013 has resumed its bearish bias as price continues to fall towards key support around 1530. This bearish […]</p>
Gold (daily chart) as of March 8, 2013 has resumed its bearish bias as price continues to fall towards key support around 1530. This bearish bias comes in the context of a strong bearish trend within a large trading range. Specifically, a sizeable trading range between 1530 support and 1800 resistance has been in place for the past 17 months, since around September of 2011. Within this wide range, price has fallen in an intra-range bearish trend from 1800 resistance for the past five months, since October 2012. The last major low that was reached occurred just two weeks ago when price dropped slightly below 1555 before correcting back to the upside.
Currently, price has once again dropped to approach this low in preparation for further potential bearishness to come. A breakdown below the 1555 low should clear the way towards key support around 1530, the bottom of the trading range. In the absence of a rebound around the 1530 level, any further breakdown below the trading range could push price down towards the 1475 and 1425 support levels.
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