by Tiho Brkan, The Short Side of Long
Final chart of the day once again focuses on commodity prices, and in particular Gold. Despite awful performance, oversold price and persistent bearish sentiment - I believe that Gold prices have not yet bottomed. In my opinion, the current price action isn't a "basing formation" like many bloggers claim.
Chart Of The Day: Gold's low volatility could be gearing for a big move!
Source: Short Side of Long
More likely, it is a continuation pattern, which could lead to a breakdown and a final capitulation. Gold could be in trouble if it breaks and closes below $1,180 area, while Silver would also be in trouble below $16.50. Let us remember that speculators hold very high bets on Silver, which we discussed in last weeks post.
Copyright © The Short Side of Long
