This article explores the technical picture in the gold chart at the end of 2014. Based on Fibonacci analysis and chart structures, some technical targets are in play. Courtesy of StockCharts.com, authored by Arthur Hill.
The first chart shows Spot Gold (monthly chart) with its second descending triangle from the last three years. Gold is testing support right now. The important take away from this chart is that a break of this descending triangle would result in a price target into the 950-1000 area, a key retracement area (61.8% Fibonacci). Resistance is set at 1260; a breakout above 1260 would negate this target.
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