The below analysis comes from stockcharts.com and provides a bearish technical take on gold.....
The weekly chart gives the best view of the trading range that has kept prices contained for over a year and a half. We thought that this was a price consolidation that would eventually lead to higher prices, so the failure of support was disappointing and has very negative long-term significance.
More after the jump....
In
the last few weeks gold has experienced a major breakdown, and, of
course, there are many opinions as to what will happen next. Let's take a
broad look at the technicals, so that we have some context for making
decisions.
The
daily chart shows the critical break below long-term support at about
1540. The bounce off the low is unlikely to be the beginning of a new
rally, rather we think it is a short-term consolidation, like a reverse
flag or pennant.The weekly chart gives the best view of the trading range that has kept prices contained for over a year and a half. We thought that this was a price consolidation that would eventually lead to higher prices, so the failure of support was disappointing and has very negative long-term significance.
More after the jump....
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