Tuesday, 2 September 2014

Gold breaking lower from one year old triangle? Maybe. Maybe not. June low is key

Gold has broken the lower trend line of the illustrated one year old triangle. However triangles are tricky and I would not be fully confident about a big new trend lower unless/until the June low is broken. Market action within the current down trend channel looks corrective to me, not impulsive, which suggests that the market could rally beyond the July high. Though the bullish view would only gain stature if (if) the market can first get back inside the triangle and then break higher from the trend channel.