When I look at the chart of gold, I ask myself like everyone else, “Is this the bottom?” And sure, no one knows for sure. But I’ll tell you this: if it is the bottom, it’s coming at a completely random level. So it’s not something I’d be betting on.
Here is a weekly bar chart of Gold futures. Look at the breakdown below this descending triangle that formed after the big April sell-off. The measured move of that pattern takes you lower. And the Fibonacci Retracements off the 2008 lows also take you lower.
So is this the bottom in precious metals? Possibly. But I really doubt it….
Those 1150s seem to be a logical area. We’ve seen support there in the past. And the measured moves from the recent triangle, as well as the big 2011-2013 topping pattern take you into that area. I personally would be much more interested down there.
Tags: $GC_F $GLD