Gold Charts
According to a Yahoo Finance article, the gold charts are suggesting there is more trouble ahead for gold. Specifically, the article said a move below $1,000 is likely, with resistance around $980.
Gold had been trading in a range between about $1,180 and $1,390 between April 2013 and October 2014. Now that the price has closed below the $1,180 mark, it indicates a strong downtrend — or so the charts say.
I like looking at historical charts and possible trends, as in many cases they can be helpful in making investment decisions. Sometimes these support levels do mean something, and they can help guide us.
But there is also a limit in using charts to predict the future. Past performance does not guarantee future results. It is perhaps one thing the SEC gets right in its disclaimer.
I have seen plenty of analysts make predictions about markets or particular stocks based on charts, only to be completely wrong. The so-called support levels or breakout levels ended up meaning nothing.
There is a reason for this
