Gold stalls decline near support lows
James Chen June 24, 2013 9:23 PM
<p>Gold (daily chart) has stalled its continued decline right above key support around the 1265-70 price region. The drop to last Friday’s low at 1269 […]</p>
Gold (daily chart) has stalled its continued decline right above key support around the 1265-70 price region. The drop to last Friday’s low at 1269 established a 33-month low for the precious metal, extending the substantial bearish trend that has been in place since the October 2012 highs near 1800. Last week’s dramatic plunge broke down below an inverted pennant pattern which foreshadowed the continued bearishness in gold. That drop extended into a swift breakdown below the previous 1321 low that was established in mid-April. With gold now hovering above the noted 1265 support area, the price is at a critical juncture. From a bearish trend perspective, a breakdown below 1265 would confirm a downtrend continuation with a potential downside support objective around 1160. Intermediate resistance now resides around 1320 previous support.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.