After a more than $100 grind lower since its April peak, gold is facing a major test of confluence in the $1240s:
There are numerous factors occurring virtually simultaneously as gold tests this critical confluence of horizontal support and trend support drawn through the December 2015 and December 2016 lows. A breach of $1240 on a weekly closing basis would be highly problematic, whereas, a reversal back above $1280 would offer strong evidence that an important low has been put in place. Therefore, I am most interested in the Friday close which will serve as both a weekly and monthly close, just before gold begins to benefit from seasonal tailwinds for the next few months.
DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher of EnergyandGold.com. This publication is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.