Gold Tests Breakdown Line
Chart Prepared by Jamie Saettele, CMT
-“Pay attention to RSI, which has been coiling since November. The length of the momentum coil indicates a great deal of stored energy and the potential for an explosive move.”
-The latest attempt on the upside failed (RSI failed at its own trendline), which keeps the broader move sideways to down. Of note as well is a possible head and shoulders pattern. Gold is testing the breakdown level now. A rally above the 6/29 high is needed in order to shift focus higher.