The Middle East turmoil has continued for three weeks. The busted two-leg bear flag pattern is shown. In mid February, gold price took off skyward on the M.E. conflicts. A higher high in price is achieved but negative divergence is also showing. Over the last couple weeks, price has moved up with a less enthusiastic histo and stochastics, but RSI wants to see another higher high after a pull back. Any resolution or good news out of the M.E. should bring price down quickly. Likewise if QE2 would end quicker than June and if talk of QE3 is permanently discounted. The China, Brazil and India rate hikes as well as ever changing margin requirements stack up for a further pull back as well. But none of this can fight a ticker with momo which requres respect.
An island top is now forming above 1400 so an obvious negative move would be an island reversal in price from 1400 to 1388. 1440 places a lid on this move up, but should that level get taken out, the gold bulls will keep on running. The H&S pattern is now a distant memory, perhaps now we are showing a new head, and the previous price peaks were all left shoulders, time will tell. Key S/R shown as 1440, 1415, 1400, 1388, 1330, 1315, 1260. 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 finanical advisor before making any investment decision.
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