Gold Daily Chart; Oversold; Falling Wedge; Positive Divergence

The prior gold weekly chart and COT chart hint that a bounce may be on tap for gold in the very near term. The daily chart corroborates that scenario. Price makes lower lows but the indicators are all positively diverged. RSI and stochastics are coming up off of oversold levels. The falling wedge is a bullish pattern.

Gold violated the lower standard deviation band (pink) a month ago but has yet to come back up to the middle band which is also the 20-day MA at 1193 so this remains on the table. The possie d should bounce gold higher in this daily time frame. Gold is trading soft this morning at 1155. It is reasonable to expect a bounce, say, at least to the 1180-1190 level. Keystone may buy some gold longs today to ride the potential pop higher. If gold continues to sink, say -2% from here, any long trade that would be put on would be exited and scrapped. But it looks good for a bounce in gold, a quick relief rally, going forward in the daily time frame. If the US dollar index sinks lower off the recent highs (see prior chart) this will send gold higher. Weakness will likely reappear, however, as the new year begins. 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 11:41 AM EST on Monday, 12/12/16: Gold is at 1162 printing a LOD at 1152..