Gold has now been rallying for 15 weeks. We should get the first major test of the weekly trend line anytime now. If gold has put in a long term low then I would expect the trend to hold. I would like to see the 1980 highs at $850 hold during the coming test.
I would also want to see the 75 week moving average hold. That average acted as support throughout the entire bull market until we got the forced selling in Oct. and Nov.
My assumption at this time is that a giant T1 pattern in gold is now in play and gold will hold above these support levels. We'll just have to see how the decline unfolds as gold works it's way into the daily cycle low. I'll be monitoring this cycle in the daily updates.
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