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Gold Extends Bearish Correction to Key Support

Gold (daily chart) as of Friday (7/01/2011) has extended its bearish correction after breaking down below a steep uptrend support line extending from the January low, and then breaking down below key previous support around the 1512 price region. This bearish correction then retraced back up to that 1512 region, now as resistance, before falling further to extend the bearish correction. This all occurs within the context of a long-term bullish trend for gold. For more gold technical analysis, please click here.

James Chen, CTA, CMT
Director of Technical Research and Education