Posted May 1, 2014 by Martin Armstrong
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.