Gold price technical analysis 22 – April, 2013 — Although gold price closed at a level higher than the opening price for several days, but we are stuck in the down channel on the long term.
The pair gold / U.S. dollar traded at the level of $ 1321.52 USD/Ounce of gold on the back of rumors that the government in Cyprus will sell her gold in order to provide additional funds, that they will be needed in order to solve the problem of the banking sector in the country.
Although the pair found some support and middle initial activity in the trading today, the breaking out of the triangle (which gold price move in since September 2011) is an important event for those who trade based on technical analysis.
For this reason, I believe that gold prices will continue in descending driven by the long-term if you measure the previous consolidation area (between approximately $1795 and 1530 USD/Ounce of gold) and that was impenetrable now, you can get a very logical target of $ 1266 USD/Ounce. This may seem crazy, but this is what we get by looking at the market. However, before one week only, i said that we will get to $ 1446.50 and maybe even 1325 USD/Ounce in the end.
From a daily perspective, I will focus on the levels of $ 1426 and 1398 USD/Ounce, Look at the area between $ 1426-1444 USD/Ounce and strong resistance area seems to be the level of $ 1320 USD/Ounce of gold as a support level.
As a result, I think we will see more consolidation in this region ( $ 1320-1444 USD/Ounce) for some time. Up movement, expected to be resistance at the level of $ 1411 and 1426 and 1444 USD/Ounce. If the downward movement, took control over gold price, fell area, expect support at $ 1398, 1385 and 1363 USD/Ounce of gold but it is not going to take place today.