The small bearish divergence was detected as a harbinger of soon reversal in the gold. All waves are there and the drop could retest former valley of $1122.
I am thinking that around 1300 we will find heavy resistance. It will take some really bad economic news to break that resistance. But if it does we could see that this turns into a cup and handle formation.
aibek
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@BobbyVirissimo, it matches with a usdjpy support area
aibek
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@BobbyVirissimo, so all eyes on stock indices at the end if they stopped falling or not
GoldAddict
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redraw tour trend line but the next time only use full bodied candles as your tops. Then you will see that the Gold price broke out of the channel retested it as support and is now starting to continue higher. Another way to gauge if your trend line is accurate is to make another trend line at the bottom of the channel using the same rules as the top. You may be righ that gold will fall lower but the way your lines are portrayed here are not accurate. Gold price broke out and it could fall back into the channel after breaking support of the upper trend line downward. I guess it will depend on if all the unknowns and volatility calm down a bit in the comming days.
aibek
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@BobbyVirissimo, hey happy new year, thanks for sharing your feedback.