Technical Damage Mounting For Gold
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Bearish Technical Signs Mounting For The Yellow Metal:
Todd has done a great job highlighting gold’s woes in recent weeks. Earlier this week, gold broke down below two important technical areas: inverse cup-with-handle pattern, and its multi-month upward trendline (see chart). Gold is also in the process of triggering a death cross (50 dma line undercuts its 200 dma line) which just confirms the multi-year down trend already in place. Stepping back gold is trading in a large 11-month flat base as it pauses to consolidate last year’s violent decline.
Gold is in a bear market
As previously mentioned, gold is in a bear market and the path of least resistance is lower, until the action improves. Trade accordingly.
Firm has positions: Short Gold & Long GLL…
