GOLD Daily Chart Oversold Falling Wedge Positive Divergence Lower Band Violation

The standard deviation bands squeeze a quick flush lower for gold over the last few days. The lower band is greatly violated to the downside so a recovery with price should develop. The green lines show positive divergence. Price is down at the July levels and the indicators want to see a bounce. In the near-term, the indicators may want a lower low due to the downside momo, so a jog move over the next few days may be on tap but a bounce would be anticipated moving forward.

Gold miners are a favorable sector for 2014 and they were beaten before gold, the metal, so miners continue to set up for their basing and recovery with the physical gold and silver metals not yet at their bottoms but very near. A large flush lower does not appear on tap as the consensus of traders are expecting. A few more days or a week or two and the bottom should be in for gold. Gold is always prone to the wild upside moves once the shorts begin covering. Keystone is long the gold miners but has no position in gold as yet. 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.