Gold Putting Year Open to Test From Below
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
-“Ultimately, it may be that gold has been tracing out a triangle since Dec 31st of 2013 that leads to new lows. The metal needs to gain traction above 1296 to alleviate downside pressure. 1240 is resistance. Support for a bounce is seen at 1206.”
-“Last week’s decline could signal the beginning of a 5th wave decline to new lows.”
-The sharp advance from the lows may indicate that a 5th wave terminal thrust is complete in gold. Trading outside of the pitchfork would indicate an important behavior change and favor such an interpretation.
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