Has Gold Reached Upside Resistance Near $1340-1360?21st February 2019
Our research has indicated that precious metals should be setting up for a period of rotation and sideways trading over the next 20~30 days. We issued a research post on January 28, 2019 warning that precious metals would be consolidated over a 30~45 day period before setting up for a massive upside price move, here. This research was based on our Adaptive Dynamic Learning price modeling system and from our Adaptive Learning Cycles system. We believe this research is still very valid and want to alert metals traders that resistance in GOLD can be easily identified near $1340-1360.
The Weekly gold chart, below, highlights the resistance channel that originates in 2016 and continues with multiple peaks in 2017, 2018 and now. We believe this resistance will act as a price ceiling over the next few weeks before metals prices attempt an upside breakout as we suggested in our January 28 research post.
Pay attention to the Fibonacci downside projected price targets near $1270~1295. These levels are very likely to be retested if the current resistance level holds. In other words, gold prices rotate back to below $1300 on moderate price rotation over the next 30 days before attempting to break resistance and move higher. Be prepared for a potential “washout high” price pattern setting up early this week.
We are still actively seeking a deeper price rotation/retracement in Gold/Silver before we initiate any new trades. We believe the upside pricing pressure has reached a level that will prompt a move back to below $1300 on healthy price rotation. If we are wrong, we will know soon enough. If we are right, then the momentum rally setup that will occur near or below $1300 will be a great trading opportunity for all investors. Follow our research to stay informed of this future price movement.
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