Gold is also currently in triangular continuation pattern, that I would venture to say is quickly, very quickly, approaching its end. However, I would beg to differ on which direction the breakout will occur. As is typical with symmetrical continuation patterns it is not clear to which side the breakout happens until it does, with some increase in volume. Gold has currently passed over its 200 DMA and is resting on the upper trend line of the pattern, i.e., it's quite possible we see a breakout to the upside, thus in effect reversing its last few weeks in a downtrend. We'll just have to see; but it is clear some move is going to happen within the next few trading days.
Agreed.Short play MIGHT be over.It made sense to cover going into the weekend because some terror/mayhem was inevitable.Bernanke's remark added fuel to fire.If you're short, you are playing with fire since Gold has regained an uptrend.It should hold because of short panic.Once it holds its moving averages, get out of the way FOR NOW-path of least resistance is up.