In today’s essay we look at three gold-related charts, each will tell a different story about gold’s performance, but ultimately, they will all point in the same direction – the direction of another move lower in the price of gold.
Gold reversed sharply to the downside at the start of September, through the rising trend line of a corrective channel. As we know, that's an important signal for a change in trend, which means that bearish price action is now back in view.
This is the third sell signal I have seen in the Canadian dollar since the trend has changed back to down in mid-October on the daily chart. I especially like this this sell signal because the Canadian hit the 20-period moving average, which has traders taking profits.