Gold Price Wedge Completes; Watch for a Re-Test of the Underside

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 broken 1236. 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 now (resistance then support in January and February) but any bounce from here would be viewed in the context of the bearish wedge.