While gold has now backed off after touching $1200 this week, it should be no surprise that prices are starting to correct after a $150 run from the December lows. Early February is also a seasonally known time period for a correct to develop which usually into late-February or March.
If we have a look at possible retracement patterns, we could expect gold to come down to between its 50% to 61.8% fib retracement point which essentially translates into the $1120 - $1140 range. In addition, there could be a solid inverted head and shoulder pattern developing should this price range hold and should prices start to move above $1200 thereafter.
Right now, the long term chart that I use off of the weekly timeframe has a long-term buy signal coming in on the 22nd of February as long as prices hold above $1130. So a correction back down to the anticipated range would provide a very ideal area to begin establishing long-term leveraged positions via the COMEX December 2016 contracts.
For more exciting gold commentary with charts and forecasts, visit www.goldvybe.com
If we have a look at possible retracement patterns, we could expect gold to come down to between its 50% to 61.8% fib retracement point which essentially translates into the $1120 - $1140 range. In addition, there could be a solid inverted head and shoulder pattern developing should this price range hold and should prices start to move above $1200 thereafter.
Right now, the long term chart that I use off of the weekly timeframe has a long-term buy signal coming in on the 22nd of February as long as prices hold above $1130. So a correction back down to the anticipated range would provide a very ideal area to begin establishing long-term leveraged positions via the COMEX December 2016 contracts.
For more exciting gold commentary with charts and forecasts, visit www.goldvybe.com