Gold Weekly Chart Descending Triangle 65-Week MA

We have watched the descending triangle form for gold for many months. The bulls are trying to nullify the pattern by pushing skyward. The stimulus talk from the Fed and China, and the increasing beat of Middle East war drums, helps the upside move. The 65-week MA chart shows the importance of this moving average for gold price movement.  The blue boxes show the failures of the 65 along the way, the 2000-2002 market crash, the 2008-2009 market crash, and now. The 65-week MA is 1657 and gold is printing 1662 as this is written at 8:27 AM EST on 8/23/12. Thus, gold has bumped up thru the 65 over the last few hours. Watch this closely into the weekend. The gold bulls will be happy campers if price starts to hold above the 65-day MA again.

Horizontal resistance is shown at 1665-ish, which is also where the 65-day MA is sloping up towards so this level may prove quite important over the coming days, perhaps a bull-bear struggle to determine the fate of the descending triangle pattern.  The green lines show a long and strong profile for price that want to see higher highs in price after any pull back, so this is encouraging for gold bulls.  The red lines in the indicators section, however, show a longer term downtrend in place.  Watch to see if price morphs into a larger descending triangle pattern shown in pink.  Gold bulls win above 1665 while gold bears win below 1575. The fun continues thru 1575-1665.

The pink lines show how important the 700 and 1000 levels were in the steady move higher in gold over the last decade.  The long run upward began from the 250 level years ago where bulls were laughed at for buying gold.  The move from 250 to 1900, 660%, is nothing to laugh at anymore.  And gold did this as the equity markets essentially provided no return due to the Fed constantly weakening the dollar's purchasing power.  Note the higher  volume candles as gold sells off over the last year, no doubt many long time holders cashing in.  Over the last four months note the drop-off in volume occurring which is not consistent to an upside breakout move. A strong move higher should come with strong buying interest but currently price is moving higher on lackluster volume. Gold will keep you guessing moving forward. The 1665 level, the 65-week MA now at 1657, 1600 and 1575 are all levels of interest; gold bulls win above 1665, bears win below 1575. The target for the descendign triangles, should the 1575 line rupture, is gold in the 1200's. 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.

Note Added 8/23/12 at 10 AM:  Gold is printing at 1667, bulls are pushing hard.