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Gold had several wild swings last week, suggesting it may be ready to correct further over the near term. In this week’s Trading Lesson (sign up here), I will look at the significant corrections in gold over the past seven years. For the December contract, I have identified above both the major (in black) as well as the minor (in red) Fibonacci retracement levels. Monthly and weekly on-balance volume (OBV) indicate that the intermediate-term trend is positive, but that does not rule out a correction to the minor 38.2% support at $1323 or even the converging 38.2% and 50% support levels at $1280-$1290.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.
