With gold teetering at the edge near $1,200.00, will it fall back to the $1,100’s?
Bullion.Directory precious metals analysis 23 February, 2015
By Terry Kinder
Investor, Technical Analyst
Martin Armstrong of Armstrong Economics pointed to last week as a possible turning point for gold. Gold did turn lower after starting last week at $1,227.70 it closed at $1,204.40. In between the yellow metal moved as high as $1,234.00 and as low as $1,197.80.
Current relevant weekly gold price pivots are:
1) $1,212.10 which represents overhead resistance;
2) $1,190.10 – support;
3) $1,175.90 – support;
4) $1,153.30 – support
The gold price doesn’t have any immediate support below the current price until $1,190.10 and will need to break above $1,210.10 if it hopes to establish upward momentum
Gold has been unable to maintain upward price momentum as demonstrated in the chart below.
After breaking above the first pitchfork, gold has been unable to make a move higher
Click to enlarge image
After initially breaking out of the first Andrews’ Pitchfork, the price of gold stalled, unable to break above the price trigger line established by the first pitchfork. The 0.382 Fibonacci level, or $1,235.30, has also proven problematic. Additionally, the price recently fell back under the red median line of the pitchfork, indicating again gold having difficulties maintaining any upward price momentum.
Gold appears to be within a triangle formation. Should it be unable to break above the triangle then gold might face a re-test of $1,130.40. A failure to hold that level would set up the possibility of a visit to the 0.764 Fib level or $1,078.00.
Barring a convincing move higher above the $1,212.10 level, there is better than even chance gold slips below the $1,200.00 level for the week.
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