We had a clean breakout above the rising wedge last week -- and
it looked like we might be going up to establish a new channel. But
now it will be very interesting to see if this correction will
simply backtest the wedge, or whether it will prove to be a false
break. If it proves to be a false break, then I would expect a much
deeper correction. If it's plays out as a successful backtest, then
this might be a quick shakeout. But I think the way gold acts
relative to the wedge will tell us a lot.
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Gold -- Will the weekly breakout of the wedge hold?
Posted by puma on 3rd of May 2011 at 03:11 pm
We had a clean breakout above the rising wedge last week -- and it looked like we might be going up to establish a new channel. But now it will be very interesting to see if this correction will simply backtest the wedge, or whether it will prove to be a false break. If it proves to be a false break, then I would expect a much deeper correction. If it's plays out as a successful backtest, then this might be a quick shakeout. But I think the way gold acts relative to the wedge will tell us a lot.