GOLD Gold Weekly and Daily Charts Downward-Sloping Channel Descending Triangle

Gold is teetering on the critical 1550 support area. The daily chart shows the downward-sloping channel in play. Price remains inside the channel with price under the 20-day MA which is under the 50-day MA also under the 200-day MA, a negative ribbon profile, bearish. The neon green lines on the daily chart show that the indicators are agreeable to setting up with positive divergence, but of course possie d cannot exist until price prints a lower low than February's low. The green circle will tell the tale. Either things set up for a positive divergence pop, or price collapses through the 1550 support. So once price comes down see if the possie d is in place.

Credit Suisse just downgraded gold, silver and copper so this ushers in weakness today. The gold weekly chart is showing a descending triangle pattern. The purple descending triangle was negated when the central bankers started making promises last summer (weaker dollar stronger gold). But gold has continued to struggle sideways ever since and the notable trend change is that when the Fed announced the replacement program for Operation Twist, which is the current QE4 Infinity and Beyond, gold is dropping instead of moving higher. If price drops through 1550, the target for the descending triangle is 1200, an area of key support.  The 65-week MA is important and after four years price finally fell under which is a bearish indication. In addition, gold price is under the 20-day MA under the 50 under the 65, a bearish sign showing roll over. Interestingly, a 380-point drop from the 1900 top is 1520-ish and represents a 20% drop in price where gold would enter a bear market. Silver is currently in a bear market down well over 25% from the top at 50.

The RSI is tracking lower and under the 50% level, bearish.  The money flow and histogram are more agreeable to sideways action with gold moving forward. The indicators over the last month on the weekly chart are all positively-sloped but price needs to print a lower low than February to lock in the positive divergence that would create a bounce. Gold is a tough call since it is sitting on the do or die 1550 level. The RSI is not in oversold territory on the weekly chart so this hints at more bearishness ahead. Best to wait a few days to see how the drama plays out.  Current projection is a move through 1480-1600 into summer time. GLD follows along with the same analysis as above.  This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.