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19.12.2013 03:33 PM
Gold analysis for December 19, 2013

Yesterday, we mentioned that our favorite wave scenario was that we are currently in wave 4 and a final wave down to new lows was anticipated. The confirmation would come if $1,220-$1,210 was broken. We also expected prices to break resistance or support levels after the announcement of the FED policy regarding the tapering of the QE program.

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Gold prices broke down and are now trading at $1,200. As long as prices trade below the purple trend line resistance, we will remain short with $1,180-$1,190 minimum targets. This is most probably the final 5th wave from $1,360.Stop for bears now is the $1,245 level. Bulls could find support at $1,190-$1,180 where the previous lows are.

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The daily chart continues to support short positions as trend remains downward. Important daily resistance is the $1,268 price level. A daily close above that price level will confirm trend reversal in the short term. Our target remains at $1,180-$1,190 in the short term.

Summary
Urgency
Analytic
Alexandros Yfantis
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