Gold Price Wedge Shaped Rally is Ominous; Watch 1219

Chart Prepared by Jamie Saettele, CMT

DailyFX Trading Guides and Forecasts

-“A key reversal formed on Monday and high is right at the 200 day average. Trendline support is near 1236.” Gold has followed through on its key reversal and is trading right near 1236 at Thursday’s close. The rally from December takes the shape of a wedge, which could spell trouble for the yellow metal as wedges often resolve with sharp reversals. A near term level to pay attention to is 1219 (resistance then support in January and February).