gold just printed a weak bounce . It's the 4th bounce from the 200 in 5 weeks.
So while many people think it's bottoming in a double , triple , quadruple bottom, I don't think it's bottoming.
It seems to me gold is forming a triangle on the .
It's just waiting for the dollar to finish its correction when it bounces again gold will break down from the triangle below the 200 and later the 200 . That will trigger our panic selling .
I have 2 scenarios for the breakout:
1.We might break above 1289$ first to suck in all the rest of the goldbugs from the sidelines.
2. We just simply break down the triangle
I counted the target price from the triangle's height ( green) : it's at 1200 and our very important blue is at 1200 too.
If we assume the triangle is a continuation pattern we can count the target price from the prior down trend (blue dotted line) it's a bit deeper at around 1175$.
Time will tell how this plays out.
We might not even get the breakout of the triangle....
Not much of a change, still in the triangle...
It's inverse correlation with gold.
If the Friday breakout is not holding in the Asian session a false breakout at this point could be a complete down reversal.
And I guess they will do it.
Gold is not bouncing even with the falling dollar.