Gold 1 week:The case made is that the gold will fell inside the downtrend shown with pink lines, all way down to 650 USD area.
I do not think this may happen because:
- The upper pink line is broken - this is same line as upper line from what I call "massive triangle". This line act as support now.
- The both moving averages will provide support.
- The brown line is the line from short term channel I follow last 2-3 weeks. It will provide strong support as well. It is currently @ $970.
- Blue line is support from year 2006-2007. This support is very strong, and I do not see how it can be broken.
- On the second chart we can see the support from year 2000 (light blue). It is currently higer than the support from 2006-2007 support. I do not see how this one will be broken as well.
Disclosure: Looking to buy speculative possition @ 970 area.