Friday, February 15, 2013

Gold Is Approaching a Waterfall Decline

The front futures are trading at $1627.90 down another $7.90.
As can bee seen in the FinViz chart below there has only been one 2 or 3% daily decline since the October double top:

Right now we're still in the rapids, setting up for some nastiness. As I said about the Shanghai last June, six months before the final bottom:
You know how it goes.
You get in the river and it's flowing just enough to be exhilarating and then the gradient increases and you're right on the edge of control and you'd be worried about the class 5's except now you hear a fucking waterfall.
Or something.
So much for the riverine imagery, if the price undercuts that spike low from January, watch out.
The magic number is $1627.90. From Kitco:

Exactly where we're at right now.
The next area of support is all the way down at $1525 from May 2012.