After testing the bottom boundary of the triangle pattern on Friday, gold bounced weakly higher, however the price is again testing the bottom boundary this morning and is in danger of breaking down out of the consolidation pattern.
The absence of Chinese buyers due to the New Year celebrations this week removes a major supporting factor for the gold market and significantly heightens the risk of a sell off.
Technically, gold remains below the key 200 DMA and has closed below it for the past three sessions, and is also below the 20 and 50 DMAs.
In our view, the market looks weak and vulnerable to a breakdown from the triangle pattern.
YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
Do your own due diligence.
No one knows tomorrow's price or circumstance.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
King Regards
