Gold bugs dropping like flies! But for how much longer?

Market Pulse for April 15

Technicals

On the daily chart below you can see that there was a technical trade set-up reflected in the TS Analyzer at Trends in Futures the last week of March as the market dropped below $1,600. Currently gold is in a strong trend with ADX at 35 and DI Diff. at 28.73. With these moves you might expect a higher ADX number but this drop so far has only lasted two days. Also you can see that the market has entered oversold territory. How far will gold drop and how much longer will this continue? We need to look at a weekly chart for that answer.

Click to enlarge.

On the weekly chart you can see this drop started in early October 2012 as gold prices tested $1,800 with gold hitting a high of $1,794.80. Numerous times through this drop gold saw a strong weekly trend develop with ADX numbers over 40.

Have a prosperous trading week.

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