Bringiton - while the pattern is clearly formed, I have to say...

Bringiton - while the pattern is clearly formed, I have to say that I don't believe the pattern will be confirmed.



As I see it, there is a significant resistance turned support level just below the neckline/s (difficult to clearly define 'the' neckline). We are literally talking $3-4. For a truly clear break, price would have to move below the white line marked on the chart which will take some doing I would think.

That coupled with the fact that there is clear bullish divergence on the RSI, with the first trough of the divergence being in the 30's (this is a classic buy signal for RSI) as well as the level of MACD, very overbought and after a short stumble, it looks like there will be another bullish crossover shortly.

Also it can't be identified on this chart, but volume in the last 3 days has picked up, with each corresponding day having a higher low.

I have been saying for about 3 weeks now that I believe we are at the start of a significant move in the price of gold (US). I find it almost impossible to believe that if gold moves up to something like $1200, that AUD gold will be lower in value than it is now. Gold will likley rally in most currencies, with the move just being muted somewhat in commodity currencies