The action we’ve seen in Gold in recent days is actually very bullish for the longer-term as the yellow metal’s technically overbought condition needed to unwind. Gold found support overnight just a few dollars above its rising 200-day moving average (SMA) which it has not breached since January, 2009. We’d like to say that Gold is now on a one-way ticket north, but that’s not really the case just yet as more consolidation and volatility in both directions can be expected over the near-term given current and previous chart patterns. The 2.5-year weekly chart, as put together by John, shows a very reliable trendline that Gold managed to hit early today before staging a powerful intra-day reversal. Bulls have to reclaim the $1,700 area but that’s not likely to happen right away.
Thanks for the continuous chart updates!! Very appreciated! 😉
Comment by M. — September 27, 2011 @ 3:31 am