GOLD 0.51% $1,391.7 gold futures

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

  1. 3,360 Posts.
    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
 
watchlist Created with Sketch. Add GOLD (COMEX) to my watchlist
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.