Gold faces an important yearly price pivot area of resistance at $1,138.00.
However, there is also another area of resistance at the $1,134.00 level that will need to be overcome before $1,138.00 can come into play.
While the second chart is admittedly busy, it's worth taking a look at because it has important implications for the gold price. Essentially, $1,134.00 falls at the intersection of A - drawn from the 6-2006 pivot high price and, B - drawn from the all-time high gold price.
The result is a resistance level of $1,134.00 at point C.
Now some may comment that the chart construction isn't a traditional one, and this is true. It is based on significant angles drawn from pivot high and pivot low prices.
Angles of 26, 13 and 7 - among others - are used as proxies for the growth or reversal of growth in the gold price.
Lines based on those angles serve as unbiased lines of support and resistance. So, rather than choose some arbitrary line based on whatever charting technique or method is being employed, these lines are drawn based on fairly simple rules reflecting geometry (and other things).
If you follow the logic of these lines to their natural conclusion, there is a good chance that the gold price dips below $1,000.00 per ounce, perhaps further, but that is a subject for another post.
Chart Analysis uses a combination of technical analysis and cycles to provide insight into the future direction of precious metals, currencies, stock indices and more.