The 61.8% Resistance Level

This morning I noticed that gold bounced off the 61.8% resistance level three times this week at $1364. This is a bad sign for the short term future price movement.

This 61.8% resistance level is a Fibonacci number and is the % retrace meant of the recent intermediate down turn. Fibonacci numbers occur frequently in financial markets as they do in nature, eg spiral galaxies and snail shells. They turn human mob behaviour as we’ll it seems!

If you don’t know much about them then do some research as it will be enlightening.

Kevin

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