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09.01.2014 05:25 PM
Gold analysis for January 9, 2014

Prices have fallen towards $1,225 as we expected from our last analysis. This decline could very well be wave B of the corrective pattern we are currently in. So now we should expect an upward bounce as wave C towards $1,275. Short term resistance is found at $1,245 and then at $1,275. Short term support is found at $1,220 and then at $1,200.

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We expect the upward bounce to try and reach the 50% Fibonacci retracement in order to complete the corrective pattern. However, we must also take into serious consideration the fact that prices have already retraced 38% and this could it for the entire correction. Holding above $1,215 will be an important bullish sign. Breaking below that level could bring in more weakness.

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The daily chart continues to support bearish positions as trend remains down. The best scenario for bulls will be an upward bounce towards $1,275. I do not see anything better than this for the time being and that is why I focus on selling the upward bounce.

Summary
Urgency
Analytic
Alexandros Yfantis
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