Thursday, May 4, 2017

Trendline Magic

Breakdown warning days in advance!

On April 27th the XAU slipped through its uptrend line to 80.36, which signaled a potential breakdown.  After a brief retest up to 83.35, it broke again, and today plummeted to 77.46, just under the March low of 77.62.

Closing above March to 78.26 was a positive sign; however, if downward pressure continues, an ABC-D target of 65.25 will likely be tested.  Below that is the E-Breakdown pattern result of 47.74, with a possible stopper above it at 54.12.

So far, the stubborn Dollar Index has refused to violate support.  Tomorrow's Jobs Report may be the highlight of the week.

Stay Tuned!

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