Gold Chart

Why I went long gold yesterday: Gold may have more downside, but I see at least a bounce forthcoming. Swing trading the bounce, with possible resumption of uptrend (unknown atm).

On Chart, notice that p5/p6 has a bull diverg with p7/p8. Another bull diverg p9/p11.

Also, there are two bullish falling wedges inside each other (wedge with trendline 2/4 and another wedge with trendlines 3 and 4.

I expect gold to bounce to trendline 2 and possibly to trendline 1, although it may decide to drift a little lower inside the smaller wedge (trendline 3/4)

* ChristopherStockGuy is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. For details, see the post from SATURDAY, AUGUST 15, 2009 titled "Disclaimer".