Prior to the current up trend on the weekly time frame, gold has been steadily falling from $1375.15 eventually touching $1120.29. price then reverse, going up and reaching the following key point:
Going up, it breaks the 24% fib level, continues & touches the 38% fib level, but doesn't hold. 38% fib (1217.75) becomes resistance and 24% fib ($1180.44) becomes support.
Price attempts, twice, to touch the 50% fib($1247.72) level, but, fails. On the 3rd week, we eventually break the 50% fib level but get stopped by the resistance Tom De Mark trend line. A new point is formed.
Price falls sharply, but, fails to touch the 38% fib ($1217.75). It is interesting to note then that, at this level, we do touch the support Tom De Mark trend line and that on the Tom De Mark trend lines, we are approaching our apex and are likely to see a new trend.
ACTION - Weekly - Long.
We need to see the gold price touch the 62% fib level ($1277.79). at that point then, we will see a sure continuation of the down trend or a confirmed fail of this reversal. to confirm that the reversal has failed we would have broken the 79% fib level ($1320.61), a point we last saw before the US election in September 2016.
Numbers - Long
Take profit : $1277.50
Stop loss : $1210.59
Going up, it breaks the 24% fib level, continues & touches the 38% fib level, but doesn't hold. 38% fib (1217.75) becomes resistance and 24% fib ($1180.44) becomes support.
Price attempts, twice, to touch the 50% fib($1247.72) level, but, fails. On the 3rd week, we eventually break the 50% fib level but get stopped by the resistance Tom De Mark trend line. A new point is formed.
Price falls sharply, but, fails to touch the 38% fib ($1217.75). It is interesting to note then that, at this level, we do touch the support Tom De Mark trend line and that on the Tom De Mark trend lines, we are approaching our apex and are likely to see a new trend.
ACTION - Weekly - Long.
We need to see the gold price touch the 62% fib level ($1277.79). at that point then, we will see a sure continuation of the down trend or a confirmed fail of this reversal. to confirm that the reversal has failed we would have broken the 79% fib level ($1320.61), a point we last saw before the US election in September 2016.
Numbers - Long
Take profit : $1277.50
Stop loss : $1210.59