We discussed last night on the website the possibility of a spike down and reversal COULD (and we say could) be a major indication that an inversion to the short term cycles could take place. This is due to the MEDIUM TERM CYCLE turn that is in motion and due Sept 23rd (plus or minus 2.5 weeks). Last year the peak was OCT 5th in gold prices. We are at full circle —–360 degrees this week from the high. Thus it is possible that an IMPORTANT LOW of medium term proportions could take place.
So far we have come back to 1324 (just 2 bucks above key 1322). While the reversal is only one hour old —- its too early to tell if this is the real deal. We need to get back above that yellow trend line and 1322 on closing basis to have more of an idea of importance. We’ve discussed the volatility potential of this week and its really playing out. I’ll continue to monitor if this is indeed a BIG TURN POINT for gold.
We have stated that the ideal time for the next major time points is October 2013 and January 2014. One hour is obviously not enough time to tell. Support is 1268-1275 and resistance 1322-1338. The range is wide and the action volatile. Watch 1305-1314 now to see if we get support there……especially 1310-1314.
This article is brought to you courtesy of Bill Downey from Gold Trends.net
Related Tickers: SPDR Gold Trust ETF (NYSEARCA:GLD), iShares Gold Trust ETF (NYSEARCA:IAU).