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

YG MONTHLY CHART

 

 

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

 

YG DAILY  MOMENTUM

 

  • 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)

 

YG D

 

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