The upmove in Gold recently stalled after reaching interesting resistance on the longer term chart. An initial reversal indication calls for shorter term bulls to be cautious now.
- WEEKLY CHART -CONTINUATION
Our last Gold Update on 21stApril showed resistance on the Weekly chart which we were looking at closely.
A recent key reversal week at this dual resistance (from the projected bull channel top and 2.618 swing projection off prior 2008 downmove) now suggests that further correction is likely. - DAILY CHART –Jun-11:
Besides resistance on the Weekly chart resistance on the Daily chart was found from the bull channel top projection, leaving our higher 1640 Fibo projection out of reach.
In light of the recent weekly key reversal further s/term weakness is likely. Support firstly comes from the Dec high and a break below this would be first sign of momentum loss. More serious, though, would be a violation of channel base support around 1400.
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