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Gold - $1400/ ounce on the Cards? - Prices to Watch

COMEX:GC1!   Gold Futures
After a quiet few weeks on gold , the yellow metal appears to be failing in this most recent breakout attempt that was observed on the daily time frame.

Weekly Time frame:

This is not at all surprising when you zoom out to the weekly chart, which clearly shows excessive exuberance to the upside, rallying quite substantially outside of the 3 ATR channel (the red bands), this set gold up for a nice period of profit-taking and consolidation, a period that we are still in currently.

Monthly Time frame:

This trend is also observed on the monthly time frame, with gold tagging the top of the 3 ATR channel before retreating, the 8 period ema
is also significantly detached from the most recent price action, sitting around $1420/ ounce.

Targets:

Watch the weekly time frame for a retracement back into the 1 ATR channel (the shaded purple region), at a minimum i would expect a tag of the channel mid point (white line) at around $1460/ ounce, but the greater likelihood is a move below the mid point to tag the lower half of the 1 ATR channel, closer to $1425/ ounce.


At this point gold would have sufficiently reset it's price action to become attractive again to traders (who are still the primary near-term price drivers).

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