Monday, January 13, 2014

If Gold Breaks Below THIS Line, Watch Out!

Where is the line in the sand... the technical uptrend, that if broken would decisively end the secular Gold bull market?

Mike Shedlock (aka Mish) of Sitka Pacific Capital Management puts it at around US$1000 on the monthly chart (source):

BofAML's Macneil Curry says a breakdown below $1180 will see critical long term support at $1087-1127 tested (source):

(click chart to enlarge)

Martin Armstrong says the 'Monthly Bearish Reversal' lies at 1152, below which a monthly closing will open the door to a further decline, potentially to technical support at $875 (source):

(click chart to enlarge)

GM Jenkins from Screwtape Files says Gold needs to hold a weekly close $1215 if the fundamental [sic] long term trend line is to remain intact (source):

(click chart to enlarge)

Greg Guenthner of Daily Reckoning thinks we've already dropped below an important technical level and the price is heading lower (source):

And finally, to revisit a previous bull market in Gold, here is the important technical level that was broken in the 1970s, which had no bearing on the final outcome (source):

(click chart to enlarge)

While charts can be useful for perspective & timing, I think it's important to remember that it's the environment and events yet to play out that will ultimately determine the fate of Gold, not a line someone has drawn on a chart.

You can follow me on Twitter. I'm usually sharing links and opinions daily (@BullionBaron). You can also CLICK HERE to signup for free email updates.


 Buy bullion online - quickly, safely and at low prices