While the gold promoters continue to argue this is wrong and gold will soar to thousands of dollars, the trend is not yet ready for prime time. On a nearest futures basis, a monthly closing below 1251 will signal a drop is at hand. Our support still lies at 1155 and 904 so nothing has changed as of yet. We are still looking at June for a nearby target. The Directional Change starts next week. A weekly closing BELOW 1280 should start the decline. Our Daily Bearish Reversal remains intact at 1253.
Technically, the oscillator is still in a bearish mode as is the trading pattern that has held very nicely within the Break-Line Channel. The bottom of that channel lines up with the $904 target area and the Uptrend-Line sits at about the $1155 area. Therefore, the technicals line up with the Reversals.
