Gold breaking 16-year rising support?

Gold has been weak for the past several weeks. So what gives?

Gold prices have been trading in a tightening wedge pattern (between its rising trendline and horizontal resistance - see point 1) for several months. Bouncing back and forth in a narrowing range.

The latest test of horizontal resistance failed yet again, leading to a reversal that is trying to breakdown below the rising trend line (A).

This trend line represents a 16-year uptrend, so it has important implications for Gold.

If you are a gold bull, you are hoping for a strong recovery... and soon. The more time price spends below this trend line, the more concerning it is.

A breakdown here would send a rather bearish message to metals investors, so stay tuned!

Gold "monthly" Chart - Uptrend Line Breaking?

CLICK ON CHART TO ENLARGE

This article was originally written for See It Market.com. To see original post CLICK HERE

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