• $1032.70 – $1044.85 support area will be critical for the buyers
• However, the combination of the Shooting Star and Bearish Engulfing Bar on the monthly timeframe implies a greater probability of price breaking through the $1032.70 – $1044.85 support area
• 200 monthly moving average could be the long term target for the bears before the trend reverses
Striking price action on the monthly timeframe paves the way for lower prices
On the month ending November 2015, bears closed price at the 69 month low with a Bearish Engulfing Bar. This was a follow up to the previous month’s shooting star which confirmed the selling momentum. Price should be heading to test the $1032.70 – $1044.85 support area next where the next course of action is decided.
If $1032.70 – $1044.85 fails to hold, price should be targeting $1006.30 and $988.00 support area next with 200 month moving average as the long term target.
Taking a closer look on the WEEKLY timeframe, it is clear that sellers broke out of the July 2015 low significantly. With this bearish break, price should be able to meet $1032.70 and $1044.10 support area soon where the last line of defense for the buyers is found.
Watch this area closely as it will set the next phase of the market.
|Real time Gold Prices (Showing in China Beijing Timing)
In summary, gold mining companies such as CNMC Goldmine Holdings Ltd would be greatly affected when Gold price falls and breaks below the $1032.70 – $1044.85 support area
. If that happens expect price to test the $0.18 low and beyond.
CNMC Goldmine Holdings is engaged in the business of exploration, mining of gold and the processing of mined ore into gold dores. (Read Report)
Source : Phillip Securities Research
Labels: Technical Analysis