Wednesday 9 October 2013

More deterioration in gold chart and dollar then starts to rally 203-10-10 0357 BST.

The gold chart is looking quite poorly as of now and just at the most inconvenient moment for gold bulls the US dollar starts to rally.

Note the thick upsloping black key pivot line on the chart below, where gold's behaviour changed from having bullish reverse heads and shoulder to bearish heads and shoulders.

The blue line parallel to this was support that held on the August correction at point (1) but gave away in this correction at point (2). Clearly the uptrend was broken there. Worse is that there was a backtest of this blue line and it became resistance:

 
As I mentioned, there was a backtest of this blue line and it became resistance. Live chart as of 04:00 today Support became resistance at point (3):
 
 
Almost the entire uptrend recover rally in gold is now looking like a large bearish head and shoulders formation:
 
 
and the entire recovery rally in silver could also be making a large bearish head and shoulders formation:
 
 
 
 

No comments: