Gold Still on Track to Hit Lower Low

By Tom Pizzuti and Kurt Hulse  OCT 08, 2013 8:45 AM

New lows will be a long-term buying opportunity.

 


In our last article about gold, we presented the case for gold finding resistance somewhere near the $1,396 price level, before turning downward to seek slightly lower lows. Gold actually reached a bit higher than the number we picked in August, but it found resistance at the edge of another channel which we presented in the same article. That channel is shown on the weekly chart below.
 

 
Our primary scenario has gold tracing a downward ending-diagonal pattern, which would call for one or two lows slightly below what we saw in June. The path with two lower lows is drawn on the weekly chart, and a count for that path is shown on the daily chart below.
 

 
As it often does, gold is responding to Gann support levels. A more detailed chart showing some of those can be found on our website.
 
This article originally appeared on Trading on the Mark.
No positions in stocks mentioned.