Gold prices that astonished investors with the sharp rise in 2012 has been disappointing investors globally and is up for more. The prices of the yellow metal are poised for further drops for the rest of this month and perhaps more.
An in depth study of the chart above reveals the following results :
1. Wolfe Wave Studies :The yellow metal did break the 2 - 4 support line way back in November 2012 and has been tanking since then. There are no support line in the immediate vicinity of the current prices which makes way for further fall in prices.
2. Camarilla Studies :Gold has also broken the L3 support line at 30532 for January 2013 on the 24th of January, which makes the metal fall into a L3 - L4 short trading setup. This adds futher cues to the possibility of fall in prices.
Analysis of the metal using secret methods of W D Gann, reveals that a trend reversal was due on the 21st of January, which was however, not confirmed by the market. We saw some positive moves that day but that was insufficient to reverse the overall negative bias.
Further reversal dates are likely on the 31st of January 2013 and the 4th of February, 2013 which must be confirmed by price movements of the metal.
Gann analysis strategies are extremely accurate when it comes to the prediction of markets movements and do not have any dependence on the prices of the instrument concerned. When we take the help of something that we are trying to predict, we are actually falling into an indefinite loop. This is why conventional technical analysis is not as relaiable as Gann's methods.