Monday, June 24, 2013

Gold Daily Chart

The green lines for the indicators show positive divergence in place but the action over the last couple days creates strong downside momo that can supply additional downside juice for gold bears in the very short term. The chart shows a potential falling wedge pattern developing that would need the summer to play out. A move back to the upper trend line is a reasonable expectation. Gold is down this morning to the 1280-ish area. The falling wedge apex targets the 1200-1250 area but the path will be jagged up and down. The expectation is that gold will develop a base and move sideways to sideways up during the summer and then at Labor Day a decision will have to be made for more down, or a robust recovery into the China and India holiday seasons which will help gold price. 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.

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