GOLD Weekly Chart Sideways Symmetrical Triangle Price Testing 20 MA

The rising blue wedge, overbot conditions and negative divergence shown by the red lines sealed gold's fate three months ago. Price dropped dramatically but the 20 week MA and neon green lower trend line craddled price and bounced it back up again. Now a pink sideways triangle is in place with price having to make a decision on a direction at any time. This week, price has tested the underside of the 20 week MA in the 1710-1730 area. This back kiss is critical. Price failure here opens the door to much lower numbers moving forward. If the gold bulls want to regain control it has to be here and now.

If the RSI drops under 50%, the stochastics already have, the gold bears will be winning and the back kiss of the 20 MA results in failure. The projection is lower prices moving forward for the months ahead. The 1580-1600 area is particularly interesting where sturdy horizontal support exists forming a confluence with the upward moving 50 week MA. The 65 week MA, shown on a previous chart a few posts back, serves as a magnet for price and it is now printing 1513.

In the days ahead, watch the 20 week MA test, the RSI 50% level, the pink lower trend line, the neon green lower trend line and if the money flow drops under the orange support line; these tools will tell the tale on gold as December plays out. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.