Gold Point and Figure chart points at possible larget bear pennant and strong resistance 2013-10-17

The Gold Point and Figure chart points at possible large bear pennant and also shows a very strong resistance line that has, as I have mentioned capped the price for 2 months.

Note that we had a rally in the last few days that fell short of resistance line that has held the price for the last 2 months. Actually, we had an intraday move down to $1250 and a move back up intrday to the low 1280s since. However,this is a sign of slippage in the price and is bearish because it may show the start of downside acceleration of the price of gold.

Also, on the candlestick charts, there is slippage every week or so as the uptrend tries to re-assert itself and fails into a downtrend. Support along these lines is always becoming resistance. Also, you can see hints of acceleration of the downtrend, though it has yet to go to the floor of the downtrend channel, which is now below the bottom of this chart: