Technical analysis of Gold dated 29.08.2013

As it was mentioned in the previous technical analysis of this currency pair dated 16.08.2013, according to the formed technical signs, there was the potential for descending of price which finally happened. Buyers with creating a bottom price near the supportive level were successful in achieving the 434.16(using of the supportive edge of uptrend channel as a target). according to the recent descend the daily candle in previous day was appeared as Shooting Star candlestick pattern that shows failure of buyers in reaching to the higher prices and formation of a bottom price in this range (closing of bearish candle).

As it is obvious in the picture below, there is an AB=CD harmonic pattern between the bottom price of 1208.52 and the top price of 1434.16 with ideal ratios of 50 to 200 that warns about descending of price from the D point of this pattern. RSI indicator is in saturation buy area and confirms the current top price, also wars about formation of a top price. Generally until the top price of 1434.16 is preserved, price has the potential of descending.