If gold can hold around the 20-week average through this cyclic low, it will be getting a higher low than December and be similar to pullbacks found in gold’s strongest bull markets. New highs are expected soon after penetrating the resistance line from December 3rd.
But if prices continue to fall then the pattern will have the appearance of an A-B-C from December 3rd and the projected downtrending support angle from December 22nd will offer a support at $1,055 +/- $5. A spike down into this level would make a buying point for aggressive traders. This action calls for a labored advance in coming months with a targeted upside range of $1170 to $1190. For more details, go to http://short.to/14tao