Fools Gold? Don’t be Fooled. All that is Gold does not glitter.
Gold’s performance of late has certainly not been sparkling.
An attempt was made on the 17th April to break out of the the 8 year bear channel marked by the black arrow on the chart. This move was rejected which started another leg down. A break below the trend support line at 1238 has confirmed this move, signalling a potential further downward movement. The next target is the minor support area at 1200 and a break below that could see the price testing the major support level at 1140.
Failure to break below the support area at 1200 could take the price back to the 1260 area and then potentially moving back to the 1200 area, forming a head and shoulders pattern.
In my opinion it is going to take a major move and a break out of the 8 year bear channel for Gold to start glittering again, further slippage is expected for the short term.
*All information in this article is the author’s opinion and is for educational purposes only. It does not constitute investment advice or a solicitation to buy or sell any financial instrument. Trading may expose you to risk of loss greater than your deposits and is only suitable for experienced investors who have sufficient financial means to bear such risk.