Saturday, February 7, 2015

Gold Is Still In Its Downtrend

Despite having gained some life most recently, gold (and silver as well) is still in its downtrend.
The chart below clears the long term technical situation of gold:

As the chart shows, in the beginning of 2015 gold bulls tried to break above the descending long term trend line. As usually, they failed.

For those thinking the classical technical analysis makes sense, I have drawn an emerging technical pattern called "Head and Shoulders". Presently gold is bouncing back towards the pink line, which is a crucial element for this formation. In the coming days the battle between bulls and bears seems to be conducted between $1,225 - $1,300 per ounce of gold.

In the short term, the Head&Shoulders pattern looks as below:

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