I have serious doubts that the weekly gold
chart will evolve into a bearish
WW. The basic line 2-4 of the ascending wedge
has been broken prematurely and even the projected line 1-6 is far too mild (using an assumed point 4 at a higher level). What more likely is taking place is the first wave a of the final decline wave C. Any reactive b-wave until 1220 for instance will not change the overall picture. Whichever wave pattern emerges, 1200 remains an extremely important resistance level
, since it represents the average core cost of the majority of mining companies.