Long-term time frame:
- Although it is still premature to assert that Gold has established a major bottom, the Falling Wedge can have concluded the corrective decline from the 2011 top. However Gold has to clear R2 = 1390 in order to confirm that a bottom is in place.
- It is also important that during a pullback Gold must establish a higher low above/at the 20 mma = 1174
Short-term time frame: Short Setup
- Daily oscillators are triggering a sell signal: RSI (14) has breached the trend line from the November low and it is displaying negative divergence; New bearish cross of the MACD and negative divergence of OBV
- Friday's Shooting Star should have completed a Rising Wedge
- If the support located at 1237 is breached odds should favor a sharp decline
- In my opinion we have two potential targets: T1 = 1192 and T2 with a range 1168 - 1150 ish (0.5 retracement, 50 dma and trend line from December)
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