What Is The Path Of Least Resistance For Gold?
Eric De Groot | Sep 16, 2014 07:13AM ET
Gold priced in major currencies which has already broken through the February 2014 low (15) is fast approaching the July 2013 low at 14.5 (chart 1). This break of minor support has emboldened the bears and terrified most of the bulls. A test of the July 2013 low is now probable, since the price generally follows the path of least resistance until its redefined.
If price breaks through the ice of July support, a major zone of support, capitulation selling - a sharp, quick, and heavy volume decline motivated by fear becomes a real possibility. Traders must be prepared to deal with this outcome.
Amid the doom and gloom, the computer has flagged an important Intermarket trend change.
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