Gold is in its 5 waves down (invalidation/reconvene if closes above 1220).
A few weeks ago, it broke below 1190 in what could have produced a sharp move down.
It was retained for 2 reasons:
1 - there is support line coming from the oscillations that started in Sep12.
2 - The Swiss referendum had created some expaction around CB buying.
(2) will be cleared today and it seems the proposal will be rejected (no SNB buying).
The price could follow its course.
If 1120 is broken, it could dive hard to 970 where there should a significant rebound before maybe reaching 880/820 .
I am not sure it will go down (hence invalidation 1220), but if it goes to 900/820 it is probably a multi year buy.
A few weeks ago, it broke below 1190 in what could have produced a sharp move down.
It was retained for 2 reasons:
1 - there is support line coming from the oscillations that started in Sep12.
2 - The Swiss referendum had created some expaction around CB buying.
(2) will be cleared today and it seems the proposal will be rejected (no SNB buying).
The price could follow its course.
If 1120 is broken, it could dive hard to 970 where there should a significant rebound before maybe reaching 880/820 .
I am not sure it will go down (hence invalidation 1220), but if it goes to 900/820 it is probably a multi year buy.