Gold Bounces Back: Now What?

After dipping as low as $1,146.00 gold bounces back

Bullion.Directory precious metals analysis 14 November, 2014
By Terry Kinder
Investor, Technical Analyst

• $1,143.63 – $1,147.27
• $1,160.60 – $1,164.27
• $1,177.69 – $1,186.70

In my opinion, the $1,186.70 level is especially important. Once price clears that level, the next important Fibonacci Retracement level is 0.382 or $1,235.30.

Gold Bounces Back: After dipping as low as $1,146.00 during the day, gold is now threatening to break through $1,180.00.

As gold bounces back it’s interesting to note that in the early AM it looked like the price was breaking down.

Gold Bounces Back: In the early AM it looked like gold price was faltering. However, note the solid support near $1,140.00 and $1,160.00.

However, gold had strong support near the $1,140.00 and $1,160.00 levels. Near $1,140.00 there was weekly and monthly support, as well as the daily pivot point. At $1,160.00 there was strong daily and weekly support or resistance when I first started looking at the chart. If you look you can see the long candle wick that fell out of the little pattern I traced out last night. Today, as the gold price bounces higher, many will wonder, “Now what?”

If the price can hold above $1186.70 then there is a good chance it will continue to advance to $1,235.30. After that would be the 0.236 Fibonacci Retracement level or $1,295.40. Right above $1,295.40 is the price trigger line based on the Andrews’ Pitchfork. If price can break through and stay above it for a few days then gold might take a run at $1,392.60. But, that’s probably getting ahead of ourselves a little.

For now, continue to monitor if the gold price can stay above the key level of $1,186.70. If it can close above that level and hold it for a few days, then it can make a run at $1,235.30.

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