Back in early Dec, this was one of my main charts I considered when predicting that gold would move from $1080 to over $1200. I obviously underestimated the move but the chart structure still worked. I have updated it with an additional fork extension and I believe it is telling us that the gold pullback is nearly complete. It could still drop a little bit and maintain the chart integrity. What you will notice is how these reversals never turn on a dime and typically take a week or more of frustrating churn before the swing low or high is in place. I know it’s odd using an inverse ETF to look at gold’s movements but so far it’s been working well for me.

DGLD

10am Update – DGLD just tagged my resistance line. Let’s see if that’s it for gold’s correction.

DGLD