Tuesday, 2 July 2013

Pullback in gold today in recovery rally. 2013-07-02

OK, gold's rally out of the $1180 low has stalled a bit today at resistance. One would expect there to be resistance here (that was previously support at two previous lows).
Gold is trading around the green line which is a parallel to the black pitchfork formation that has delineated the trend for the last 3 months.

Another parallel has delineated the two most recent highs that are also on the upper red line of the bearish triangle (pennant) formation shown in red.

So the pitchfork still remains in force in my opinion and I am looking to see how gold behaves with respect top the existing downtrend channels shown above. It has a long way to go to get past the top of the channel, which is at $1400 at the moment but comes in at about $1350 in about a month's time.

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