Gold Price Rockets Into Potential Fed Hike, Reversal Could Be Significant
San Francisco (Dec 6) Spot Gold reversed to the upside by $30 on Friday, but more significantly from a technical perspective is that the strength on a Friday, if sustained, has the potential to put in a key, upside weekly reversal, which has significant positive technical implications—that the long slide in Gold, off of its September 2011 high at $1921.50, is complete.
Gold must close above $1081.41 to put in a weekly upside reversal.
Of course, to confirm such a low, Gold must exhibit upside continuation, and must climb above $1110 to trigger initial buy signals.
From my technical perspective, the enclosed longer-term, weekly chart exhibits two salient aspects:
1) that continued weakness beneath $1085 represents so far, a sustained breach of the exact 50% retracement-support zone of the entire 1999-2011 Bull Market... and
2) that the price structure appears to be heading for one of three potential downside targets created by lower-channel boundary lines derived from the Sept. 2011 and Oct. 2012 highs.
These downside targets are: $1000... $960.00... $890.00. The fact that my weekly RSI momentum gauge is not confirming the current breakdown to new 6 year lows indicates that the first target zone of $1000 is the most likely area from where Gold should establish a significant low and pivot to the upside in a powerful reversal. (MJP 12/02/15).