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Takeaway: Gold failed to recapture my 1st line of resistance (1492) and remains in a Bearish Formation (bearish TRADE, TREND, and TAIL) as a result.

This note was originally published May 07, 2013 at 12:02 in Macro

I’m getting a lot of client questions about Gold today. I focused on it in my Early Look note this morning, but there was nothing new there – and that’s the point. Gold is broken. And that’s not new either.

Across our core risk management durations, here are the Gold lines that matter to me most:

  1. Long-term TAIL risk line = 1681
  2. Intermediate-term TREND resistance = 1579
  3. Immediate-term TRADE resistance = 1492

In other words, after bouncing to another lower-high in the last few weeks, Gold failed to recapture my 1st line of resistance (1492) and remains in a Bearish Formation (bearish TRADE, TREND, and TAIL) as a result.

Keith R. McCullough
Chief Executive Officer

Broken: Gold Levels, Refreshed - gold