Gold Price Reverses Near Key Rectracement Level [SPDR Gold Trust (ETF), iShares Silver Trust (ETF)]

gold timeGold Silver Worlds: The first chart shows Spot Gold ($GOLD) getting a bounce off the 1140 level in mid March and hitting resistance in the 1220 area twice now.

I think the long-term trend for gold is down because of the 52-week low in November.

Even though the surge to 1300 looked impressive, gold gave it all back with a decline back to the November lows and the current bounce only managed to retrace 50% of the prior decline.

At this point, the immediate trend is up, but this is a counter-trend move.

A break below support in the 1180 area would signal a resumption of the bigger downtrend and project a move to new lows.



The second chart shows Spot Silver ($SILVER) with a head-and-shoulders pattern of the continuation variety.

The prior move was down so this makes it a bearish continuation pattern.



The third chart shows the Gold Miners ETF (GDX) with a continuation head-and-shoulders pattern as well.

The ETF hit resistance in the 20 area in November-December, and again in March-April.

A break below neckline support would project a move to new lows.

The indicator window shows the Gold Miners AD Line ($GDXADP) breaking to new lows in late March.

Pages: 1 2

Leave a Reply

Your email address will not be published. Required fields are marked *