Bearish flag breakdown
Prices of Gold could soon retest the 4-year low of 1072.35 following the breakdown of its bearish flag pattern this week.
The breakdown signals that the next leg of the larger final bearish wedge pattern is underway with the wedge support coming in close to the 1050 levels.
We believe that this is the final wave down as there are 5-waves in a wedge pattern and the bullish divergences on its weekly MACD support this view.
Potential Fibonacci targets come in within the 1006-1045 levels.
The round figure of 1000 is also another magnet to draw prices lower in the coming weeks. All these bearish targets remain viable as long as prices stay below the 1192 levels.
|Real time Gold Prices (Showing in China Beijing Timing)
Gold would likely end the year close to its 4- year low but we believe that 2016
would be positive for this precious metal, making it a good vehicle for investment next year. (Read Report)
Source : CIMB Research
Labels: Technical Analysis