GOLD – Double Bottom Low at Key 50%
7th January 2016
Longer-term signals for GOLD on our trend table had been bearish for some time, but a small monthly Doji candle in December at 6 year lows has also come from close to 1087.5, a key 50% pullback to the entire 2001-2011 bull market, switching signals going into January to neutral. However, this month’s strong open has ended a sequence of lower monthly highs and a weekly close above 1087.0 will confirm a Double Bottom low with a target at 1127.0. With signals improving the outlook for the rest of Q1 is now temporarily bullish above a stop loss at 1046.2, December’s base, targeting 1104.5, October’s low, 1119.0, a 50% recovery to the Oct-Dec losses and 1136.0, a deeper 62% correction.
