Gold Long Term Technical Chart Trend Pictire versus Opinion

Gold Long Term– Neutral;

Moving averages (1223-1226)

Even the long term chart is showing just how CRITICAL the 1180-1220 area (especially 1222) is for gold with BOTH Moving Averages and PRICE coming together AT THE SAME PLACE.

If gold ON A MONTHLY CLOSE ONLY can keep closing above 1222 and the BULLISH Blue average moves above the BEARISH Red average, (only 3 dollars separation) then the long term trend will go from NEUTRAL TO BULLISH. UNTIL then Gold remains technically Neutral. A close below 1222 on the last Day of November will warn that 1122 will be tested.

Gold Long Term (continued)

The bottom line is gold must overcome the 2011 downtrend line in order to start the next leg up. Until then, the bears most likely gave their best effort here to get gold to sell off into a good correction and they have been successful. Now the next critical test, the moving averages are here.

Another way of looking at it, is if this area can’t hold, the BULLS can’t say the bear market that began in gold is over. If they do say it, it is only opinion (and pride).