Good question: Will the downtrend channel of gold hold or break to the downside?
Who knows? $1080 could have been forecasted as the channel floor for mid-2015 as far back as the turn of this year.
The downtrend channel in gold since late 2013 has narrowed from around
$250 in 2013 to $170 now. It's barely a falling wedge - it's just a falling channel!
The channel ceiling is at about $1250 and the floor is at $1080, so stepping down that channel would give a new range from $910 to $1080. If it takes a little time to get to the $910 target, then it could go lower because the channel is downsloping.
So, $890 is well in the sights if the current trend channel breaks down and if a new lower trading range persists parallel to this one, sloping at about $50 every 6 months, Rick Ackerman's $817 target could be reached in under a year.