the chart alone explains itself. Basically been in a down trend since middle of 2011. Was range bound from 2011 until April 2013
. Has since been in another range. Last week i called out a couple small demand levels and price pretty much blew right threw them. Indicating to me that price still wants to go down further. There are some similarities to the ranges we may can work with. One could play it like a breakout meaning play the return to the upper range short. One could could play the break from the current range either up or down. Personally it looks to me like everyone who has any gold
, pretend or otherwise is selling it. I dont see gold
stopping its fall untill it gets into the $1000ish range i have lined out with the black dotted lines. One thing really evident to me on this chart is simple support and resistance
. I suspect we have all heard the old mantra old support becomes new resistance and vice verse. The $1000ish price zone served as major resistance and has never been revisited since it broke through. It is the most prominent price support area
on the chart.
Strictly from a personal perspective i suspect the S&P
and all other indexes will continue to rise as gold
continues to fall. If gold
bottoms at $1000ish then i believe the major indexes will roll over and begin its decent as gold
reverses and begins to climb again.
Based on all of the above i am bearish
all the way down to $1000ish price zone.