I have calculated the length of the cycle of market that occurred from 2011 high ($ 1,920) to the 2013 low ($ 1,180) by using 0.62 golden ratio, there is market following the June 2013 Low will expire in July 2014 High, where the calculation is as follows:
The next cycle after 2013 Low
((June 2013 - September 2011) * 0.62 + June 2013 ) = July 2014 High
Let's just say the result is true, then I state that $1,345 is a high price level in July 2014 High.
Now I am trying to connect it with the formation that is formed when prices approach the price level. Formation, there seen a Falling Knife that can be categorized as a sign. but the movement can only move up @ $1,322, can not reach its peak at $1,345, it’s just different $23.
from $1,322, Gold then fall back to $1,257 closer to $1,240 Jun 2014 Low, and price moves under the Symmetrical Triangle Apex and a Falling Knife (if I pull the line correctly) and even under DMA50 and DMA200.
Well, now we assume that the $1,240 - $1,257 have a tendency forming a unbalance . For me a will not test It peak @ $1.322 if price movement failed to pass $1,315 (although sometimes moving for test but turned again below $1,315, such as $1,180 - $1,178 can penetrate $1,345 but turned back and move below $1,345 after not being able to test $1,435 after reaching $1,392.).
Last look at the formation of the Inverse Symmetrical Triangle of my previous post entitled "Does the Reversal Will Bring More Gold Decline?". The current price after breakout $1,260 may be will be faced with a possible test $1,310.
"Probably It Will Take Less Than 4 Steps Again"
1. To test the upper range of Inverse Symmetrical Triangle @ $1,310
2. To test peak @ $1,322
3. To test $1,345 that represented by 2nd handle
In my view, the current price movement still has a chance to fall back and re-test $1,240, if price is consistent move below $1,275/80 which is the tendency for the formation to form a integrity of Unbalance $1,392 - $1,345.
We will see for the next few days, whether gold is locked @ $1,305 (+-$5) or not.
Happy Weekend For All of You
From The Desk Of A Newbie