Gold gave up $8.70 last week (after the previous week’s gain of $81.30/oz.) to close at 1,230 and printed a bearish harami candlestick on the weekly chart. Friday’s close was on resistance at 1,230. Look for support at 1,190.
A breakout from the 34-month exponential moving average (chart) would be very bullish. Assuming a breakout, our price target is 1,370.
A 4yr cycle low is due in the first half of 2016 possibly as early as Feb/Marchbut It looks increasingly as if it may have arrived last December. Wait for a breakout from the 34-month moving average to make that decision. Weekly cycles point to a high in late March.
Get your copy of the February Lindsay Report at Seattle Technical Advisors.