Gold today reached levels not seen since October 2014, leaving room for more price action on the downside to come. On the weekly chart price has broken below the horizontal support line that formed the base of a triangle which formed over the past seven months. ADX and DMI both show momentum is now on the downside and growing. The day chart shows that the bear trend is well underway however the Stochastic Oscillator and the ADX lines are both showing signs of oversold, I wouldn’t be surprised therefore if we start seeing some consolidation next week or a retracement before price continues its downward march.

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