The bearish case reveals steep correction of the value of gold could also be imminent, however the hazard of a correction may very well be averted. Right here's how …
by Rick Ackerman of Rick's Picks
April's tortuous Gold Gold trajectory in the direction of an "straightforward" rally objective at 1:32 pm warrants a more in-depth have a look at the bearish case. For if the futures contracts fell solely $ 9 from the inexperienced line at 1307.40 within the chart (click on on the field), the theoretical promote sign would drop to 1255.90, a fall of four.5% in comparison with the present. ranges.
Though the uptrend began final August from 1182 nonetheless dominates the each day chart, the counter A / B pattern proven within the chart is compelling sufficient to counsel steep correction may very well be imminent. The hazard could be averted by a rally of greater than 1356.80, the place a low however technically vital peak was reached in the course of the descent from 1400 final spring.