Blake Morrow’s Chart of The Day – Gold is in a Descending Wedge
The gold market looks like it is developing a descending wedge near term which could spend the next weeks developing below the 1950 level. This would be a compliment to the bullish breakout we are seeing in the US Dollar index near term. Last week the Gold market respected the 61.8% Fibonacci level at 1948, and despite the slight break of the 1950 level, the failure allows for a risk for near term lower prices. A drop back below the 200dma at 1915 may expose a move back towards the 1885 level. However, since this is a descending wedge, ultimately the setup may allow for a bullish bounce to develop below the 1900 level in the weeks ahead.