Friday, 5 July 2013

Complete failure of bullish pennant on gold - really bad news? 2013-07-05

I posted late last night saying the potential bullish pennant on gold looked vulnerable. The resistance above the pennant looked to be acting strongly and is from a line in place since the failure to get above $1590 in April before the crash.

Comments on the picture say it all: Now I am going to look and see if I have to change the downtrend pitchfork in place since 15 April and put in a steeper one, which would be very bearish and could increase the pace of the decline and extend the hyperbolic downtrend.

Note that the blue line is a steeper downtrend than the sloping black lines that have been in force since mid-April:
Oh dear. Here could be a new downtrend to $1000:

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