Gold missed completely our earlier expectation and starting sliding toward dangerous levels. It broke shortly the trend line before recovering to the 1315 level who provides a good short term support. On the other side bears are starting to get in control and we forecast, in the short term, a further drop to the 0.39 Fibonacci at 1307 which correspond to the support given to the 100 MA.
If this support fails, we think that the price will correct up to the buy zone, that we consider safe to open long positions, and where the 200 MA is a unbreakable supporting line. The other option is that gold will rebound from the trend line and continue its run up to the 1325 level. We give a chance of 30% for this to happen, while previous forecast is evidentely more likely to realize.We are bearish on the short term, but bullish on the medium and long term.
If this support fails, we think that the price will correct up to the buy zone, that we consider safe to open long positions, and where the 200 MA is a unbreakable supporting line. The other option is that gold will rebound from the trend line and continue its run up to the 1325 level. We give a chance of 30% for this to happen, while previous forecast is evidentely more likely to realize.We are bearish on the short term, but bullish on the medium and long term.
