Monday, 13 October 2014

Gold entering the sell zone again?

Earlier today I tweeted "Gold entering the sell zone again? ...". Now I'll past some more charts illustrating why it's a proposition worth considering.

First chart is a daily chart of Gold so far this year. The market is nearing overhead resistance at the June low. Also looks to be turning down from the lower down trend channel line and the 40 day moving average.

More on that 40 day moving average... the next chart zooms out to two years worth of action to reinforce the idea that rallies to the 40 day moving average have been a good place to look for short entries. 

Last chart zooms out to show that Gold recently tested key support just above 1180. The short term bearish edges described above suggest the market could revisit that level again soon. The symmetrical triangle offers a measured target below 1100.