Wednesday, July 28, 2010

Barclays Technical Analyst Says $1,127 Gold Possible

The reason given by the analyst is gold falling below a trendline that has held up for 21 months. The specific target was reached by Fibonacci analysis, using a 23.6% retracement from gold's October '08 low.
“The trend-line break is forcing a lot of people out of their positions,” MacNeil Curry, an analyst at Barclays, said in an interview from New York. “People being washed out of their positions may open up an opportunity for a stronger base and subsequent move higher.”

Technical analysts tend to be trend-followers; as a result, their predictions often are bankable in terms of footage. This prediction plays into the current cloud over the metal; a contrarian may doubt as a result.

1 comment: