Prices are testing support at 1272.98, the 76.4% Fibonacci expansion. A
break below this barrier on a daily closing basis exposes a falling
channel floor at 1267.98, followed by the 100% level at 1257.63.
Alternatively, a reversal above the 61.8% Fib at 1282.47 targets the 50%
expansion at 1290.15.
Gold forecast for the week of August 25, 2014
The gold markets fell during the course of the week, but found the $1280 level would be slightly supportive. The market looks like it’s trying to figure out how to go higher, but right now we simply don’t have enough support. The market seems to have a bit of a “floor” at $1200. With that, we are looking for some type of supportive candle in that general vicinity to go long, or a move back above the $1300 level for a significant amount of time. At this point in time though, we feel that this market is probably one that isn’t going to do much over the next couple of weeks.
