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 on gold all the way down to 1000ish price zone.
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if this recent pivot low holds this makes gold technically in the early stages of a possible up trend.
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JamesPowell
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even though gold is still in both a down trend and in a range there are still plenty of trading opportunities on smaller time frame charts.
JamesPowell
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this is a remake of the above daily chart. I learned its best to post daily charts when ever possible. That big chart at the beginning of this post barely even wiggled.
Stockman
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Yeah uhhh, no ..... here, target 1310, keep it simple guys .... too many Pollock paintings this morning
JamesPowell
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Um, did you just call me out of my name?
JamesPowell
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hey guy, see any more good Pollock paintings recently? I admit its pretty funny.
JamesPowell
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this is a 4h remake of the above chart. Price doesn't care where we draw lines or fib or anything. Price will bounce like a pinball between supply and demand. The trick it to locate that supply and demand.