Gold 200 day Average of Interest at 1615

By Jamie Saettele,,

Shutterstock photo

Daily Bars

Prepared by Jamie Saettele, CMT

The 3 wave rally from the September low is viewed as a correction of the decline from the record high and should be completely retraced. A look at the long term picture reveals that gold remains above long term trendlines but some of those lines are well below the current level. Even a test of the trendline that has defined price since the summer 2010 lows would result in a test of the mid 1500s (52 week average in the vicinity). A drop similar in amplitude to the one that occurred in September would reach the low 1400s. If gold has entered a larger bear market, then price needs to stay below the September-November trendline. Confidence in the downside is increased as gold has broken trendline support.

Other TA Articles

forex news currency trading

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Commodities
Referenced Stocks:

More from DailyFX




Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by