Sunday, 25 September 2011
Log scale weekly candlestick chart shown below. Gold is testing the area around the mid channel trend line, which has acted as resistance many times in recent years and now may (may!) act as support. The market is also testing the 18 week moving average, an area which has acted as support since 2009.
Next let's look at the daily chart, arithmetic scale, showing the same parallel trend line angle that has proven so useful over the past decade. The next zone of potential support lies between 1570 and 1600.