Gold Price Support Resistance Next Week (12-22-14)
Bullion.Directory precious metals analysis 23 December, 2014
By Terry Kinder
Investor, Technical Analyst
On Monday, the gold price broke down below the key support level of $1,186.70. Unless there is a quick and decisive reversal, gold price support resistance next week could retest the $1,130.00 level.
Chart: Gold Price Support Resistance Next Week (12-22-14):
Gold Price Support Resistance Next Week (12-22-14): The gold breakout appears to be failing
From my ealier post about the above chart:
Today’s price action in gold, seen above, appears to be potentially very damaging for the gold price prospects in 2015 and appears to confirm Wagner’s gold price forecast 2015.
A few points worth noting from the chart:
1. Today’s closing price at $1,175.10 (A) has fallen below the 0.5 Fib Retracement level of $1,186.70 (D).
2. The gold price fell below overhead price resistance at C.
3. After breaking out of the upper parallel channel of the Andrews’ Pitchfork, price failed to reach the descending price trigger at B.
4. MACD is rolling over at E and is falling back toward a support-resistance line F.
5. RSI remains relatively weak. RSI briefly rose above a resistance line G, but has since fallen back below it.
All of the above looks pretty bearish for gold. The price action today was especially damaging to gold. Unless there is a fairly prompt and strong reversal, then gold could be heading back for a re-test of the 0.618 Fib Retracement level at $1,138.10. Below that, the 0.764 level at $1,078.00 and then $980.80 could come into play.
Key Gold Price Support Resistance Next Week (12-22-14) levels to watch:
Downside –
Upside –
I have included a pretty wide range of both upside and downside prices in this discussion of gold price support resistance next week, but because of the price action Monday am leaning toward the downside price targets. Unless gold can take $1,186.70, $1,202.00 and then $1,228.00 – $1,235.30 in fairly short order, I would be inclined to believe gold is setting up for a retest of the $1,1130’s. Should gold slip below $1,130.00, the the next major downside target to keep an eye out for would be $1,078.00.
With the failure of the gold price to hold above price resistance, it’s important to watch if the price falls back into the Andrews’ Pitchfork. Should that happen and price does not recover quickly, it would not be surprising to see the price fall all the way to the midline of the pitchfork near $980.80.
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