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18 Dec 2013
Gold hugging the flat line after a bearish reversal day; technicians calling for more downside
FXstreet.com (Barcelona) - Gold is basically flat for the session as traders apparently are content to remain in a holding pattern until the Fed / Tapering Extravaganza late in the Wednesday session.
Gold traders’ plans of actions are likely set – will the reality match the playbook?
Sometimes the best made plans are shredded by reality. However, plans have to be made anyway. Right now, the plan seems to be to sell gold on tapering and to buy gold on no-tapering. Only time will tell if the plans match the reality.
Technical outlook for gold
Technicians say that if the most bearish scenario plays out that the ultimate downside target for gold is 1,065. However, gold would likely see some buying interest at the 12/6 low at 1210.10, the 6/28 low of 1179.80 and the Fibonacci projection of 1172. Resistance comes in at the recent pivot high at 1250 and is followed up by the “correction resistance” Fibonacci projection at 1268.30. Above that, the 11/14 high of 1293.90 comes into play.
Gold traders’ plans of actions are likely set – will the reality match the playbook?
Sometimes the best made plans are shredded by reality. However, plans have to be made anyway. Right now, the plan seems to be to sell gold on tapering and to buy gold on no-tapering. Only time will tell if the plans match the reality.
Technical outlook for gold
Technicians say that if the most bearish scenario plays out that the ultimate downside target for gold is 1,065. However, gold would likely see some buying interest at the 12/6 low at 1210.10, the 6/28 low of 1179.80 and the Fibonacci projection of 1172. Resistance comes in at the recent pivot high at 1250 and is followed up by the “correction resistance” Fibonacci projection at 1268.30. Above that, the 11/14 high of 1293.90 comes into play.