when you look at the 2 year gold chart it is obvious that we have been selling off quite rapidly in gold since the OCT 2012. There are many analysts saying gold will crash more, however the breadth is telling us that gold is very oversold at these levels, and to expect some sort of bounce soon.
We are currently at 1575, and oversold, the recent highs up at approx 1625 is a good level to work from and we feel if this level is busted, more buy stop programs will trigger and a nice rally in gold will ensue.
also there is a very significant falling resistance line drawn on the chart that goes to the 1650 level. So We would not be surprised to see prices go up and even bust through this line at some stage. But there will be plenty of opportunity on the way up to these levels too you must remember.
|2 year gold chart|
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