Gold has been declining since mid February and the 1,346.79 High. If this pull back has been purely technical then the important test on the 1W chart has arrived as the price is on the Higher Low region.
What is more interesting is that last time Gold tested a weekly Higher Low on a similar pattern was in December 2017 and the rebound was so strong that gave way to one of the most aggressive rallies in recent years all the way to 1,366.47.
The waves seem similar, 1,360 - 1,370 is the 1M 5 year Resistance, so there is a strong case for a rebound on the current level. In addition, since the current uptrend (since the August bottom) has been shorter and more aggressive than the previous one (December 2016 - January 2018), this time Gold may deliver the decisive test of breaking towards 1400. This is still vague at the moment. If the current 1W Higher Low breaks though we may be looking towards 1,200 - 1,180 again. But for now I am a strong buyer on Gold.
Don't get your meaning about testing the higher low. A lower low os npw in, and has the look of a H&S breakdown. not that reliable of a brk down pattern, but still. No gold here but looking for a bottom myself, just don't see any real possibility tho. I do like the trend lines, and think that may be something to watch, Got long platinum recently, watching si and gld
moneymaking
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Really like your clean and simple approach to technical analysis. I also like my charts clean and easy to look at. Nice Work !!
TradingShot
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@moneymaking, Thank you for the support! Your charts are nice and easy to understand too! Keep it up!