September 19, 2011
- Four hour chart of gold shows a bullish reversal pattern
- Daily chart shows price testing 50 Day moving average. This is the second test of this moving average in a short span of time. So if this average does not hold then we may see bigger correction in gold.
- Price getting support here may give good upsides and a breakout from the falling wedge pattern.
- If week starts sustain above 5195 or a weekly close above 5195 Then the positive divergence shown above will starts to show its effect. This also may lead to the failure of descending triangle pattern which is bullish.
- As of now price is staying in the lower part of the channel as shown in the last chart. Above bullish possibility will be possible only if weekly candles start to close above 5195. Bulls should also keep in mind the GAP between 5230 - 5300 if price gets there.
- A similar Descending Triangle Failure played out in GOLD Four hour chart last week.
- GOLD DESCENDING TRIANGLE POST UPDATED