A review of our Gold forecast.
We forecast a short term bearish view on Gold futures. Price hit a low of USD1,267.90 and reached our target price zone of USD1,265-1,270 before rebounding.
Price traded as planned.
One thing to learn here.
Fibonacci tool is a very useful tool in forecasting target price. On the above Gold trade, coupled with the demand and supply actions before the breakdown, it gave us clues that the selling would be somewhat weak.
Thus, with the above, we set a near-term target at 1.618.
Fibonacci tool is one of the forecasting methods we used in our Richard Wyckoff Method class. By combining demand and supply analysis with Fibonacci application, setting target prices helps traders to be in harmony with markets.