Thursday, 12 November 2015

Charting three reasons why Gold's low for the year is probably already in

Daily chart presents the first two reasons why I think Gold's low for the year is probably already in, being (1) the clear bullish Elliott Wave structure from the July low and (2) the oversold RSI, if you look closely it is showing a bullish divergence against this week's fresh low. 

Weekly chart shows the third reason. Gold has a history of holding above significant lows when retest looks likely several months later.

Markets are of course inherently uncertain, you best believe that anything can happen, and Gold may well slide through the July low in coming days or weeks. What then? Next weekly chart suggests that downside could be limited by nearby trend line support.