Gold Rally Unfolding in Impulsive Manner
60 Minute Bars
Prepared by Jamie Saettele
Despite the warning signs that gold is vulnerable (divergence with momentum on monthly, weekly, and daily time frames) gold has failed to trace out a bearish short term pattern (the decline from the top is in just 3 waves). As such, additional strength remains favored. A break of long term trendline support is needed in order to suggest that an important top has formed. The trendline is at 1357 this week. Near term, a new high would make 5 waves and give way to a small corrective decline back towards 1420.
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