Monday, December 30, 2013

Ugliness in Gold: The Charge of the Bear Cavalry

Gold got hit with an ugly stick going into today's close, with a late-day sell-off taking it below $1,200.

Now, everyone is watching support from June. But which support?  You could use a candlestick chart, where you can see the daily dip in June lines up nicely with Fibonacci support.

But I prefer a close-only chart. It takes out the intraday noise. Fibonacci support is still there, but it hasn't been tested, as you can see.

The question becomes, is gold headed down to test 1,000? Or is that too obvious?

For now, anyway, the bears are in charge.

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