Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
Commodity Analysis: Recent commentary was that “1585 remains support and failure to hold 1585 could spell trouble (a run at the lows). Consider the possibility of a triangle (probably bearish) forming since the February low. The triangle pattern would ‘fit’ with gold’s quiet trading in recent weeks.” Today’s sharp drop could be part of a triangle…or something more immediately bearish. Even if gold consolidates for a few more weeks in order to complete a triangle, the resolution is probably lower.
Commodity Trading Strategy: Flat
LEVELS: 1500 1522 1555 1593 1620 1640