Citi analyst Tom Fitzpatrick believes the correction down for gold has ended with additional support coming in at the $1,669 level. While choppy price action may be seen over the weeks ahead, he believes that overall the trend is still up and higher highs will be seen in 2013.
December 6, 2012
King World News
With continued volatility in gold and silver, today King World News wanted to share what top Citi analyst Tom Fitzpatrick released concerning the action in the gold market. Fitzpatrick has been incredibly accurate regarding his forecasts for both gold and silver.
Here is what top Citi analyst Fitzpatrick had to say, along with powerful charts: “Gold: Gold held the 76.4% retrace against the Nov low yesterday thereby giving an early indication that the correction down may have ended. Additional support comes in at $1,669.
The correction down on Gold stalled at the 76.4% retracement against the low on 11 November. This retracement level came in at $1,692. This is not so dissimilar in “pattern” from the setup seen at the lows throughout May – July this year, although the magnitudes have been smaller this time.
What followed in July was choppy price action but overall higher lows and eventually a bullish break. Another similarity between now and then is that Gold posted a bullish outside week / weekly reversal on both occasions…
The bullish weekly reversal posted 5 weeks ago is still valid. Additional support comes in at $1,669 (55 week moving average that also held as support 5 weeks ago). The short term resistance level to watch is $1,754 and the more important resistance level is $1,790 which should be watched on a weekly close basis. It marks the double bottom neckline.
The price action over the past year reminds us of the correction / consolidation seen on Gold in 2006 before a break to higher highs. While choppy price action may be seen over the weeks ahead, we believe that overall the trend is still up and higher highs will be seen in 2013.”
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