Technicals - gold - no sign of a turnaround / major support located at US$1105
QMG Pty Ltd
The spot gold price originally generated a technical sell signal at US$1321 on 25/8/16, resulting in the technical outlook turned negative. The 11/11/16 decline resulted in the gold price closing below further key technical support at US$1227 which flagged the next downward move in the gold price (refer to second chart below). The first chart highlights that major long-term support is now located at US$1105. The technical outlook remains negative given there is no sign of base forming emerging. A re-entry technical buy signal will only be generated after the required technical base forming occurs.
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Angela has over 30 years experience in the technical analysis field. She provides technical analysis coverage of major Australian and global stocks / key markets, including provision of a bespoke technical service to wholesale clients.