Gold reversed the gains of the last two weeks, anticipating a resolution to the eurozone’s “Grexit” crisis. Follow-though below $1170/ounce would warn of a test of primary support at $1140/$1150. Repeated peaks below zero on 13-week Twiggs Momentum signal a primary down-trend. Breach of primary support would offer a long-term target of $1000/ounce*.
* Target calculation: 1200 – ( 1400 – 1200 ) = 1000