Gold Price Rejected At The Top Rail
Drawing the wedge to the Trump Spike seems to fit best now. We’ve been rejected at the top rail, and it appears we could see as much as a $40 drop. The miners have been hinting at this with their crappy performance. All is not lost though. We could yet see a classic breakout of this bullish symmetrical triangle/wedge. They usually (but not always), break to the upside, with a continuation of the bull. You can see from the chart below that everything is aligned for the final decision point in the next couple of weeks. If the bottom rail breaks (assuming its not a false breakdown), I would get out fast (that would be my strategy anyway).
I’m currently positioned for ‘option 1’, but ready for option 2 if that’s what we have to face. One headline/quote/hint of armagedon could turn the chart either way at any point, but that final decision point is coming fast.
I would like to sign for option 1 but I afraid US$ could turn bullish any time soon
This has been dragging on for a long time now, and we’ve had to wait patiently for this big triangle to play out. A drop looks highly likely now, but we’re ok as long as the bottom rail holds – in fact that would be the sign we’re going to see some real upside price action. Time is ticking away, and a big move is dead ahead…