Gold approaching an important long term indicator

GOLD IN THE 21st CENTURY

In order to verify the importance of the 1364 area, we have one other LONG TERM TREND INDICATOR and that is the FIBONACCI 89 month moving average. We’ve used and shown this chart before.

When gold is above the 89 month moving average, the long term trend is bullish. When it’s below the average, the trend is bearish. Look how price has been rejected the last three times we hit the moving average. Note how the moving average is at 1366. When we remove all opinion and crunch the numbers it tells us that ODDS FAVOR the long term trend UP in gold will only resume once we close above 1366 on a monthly basis. This hurdle has to be removed for us to say with evidence that the long term trend up in gold has resumed. Until then, we cannot rule out a final plunge lower.

Summary

When we remove all opinion and just crunch the numbers, in order to say the long term trend of gold is up (and to be able to back it up) would be to have price above the FIBONACCI 89 month moving average as support & not resistance.