Nexus Gold - Gold’s Next Move ? Gold is currently trading near a critical level from where a massive move up or down is imminent. One of the measures that illustrate we are close to a big move is the following resistance line on the gold chart that I have highlighted.
Below is a gold chart with the resistance line indicated:
The red line is the critical obstacle that the gold price has to overcome to facilitate the continuation of the gold bull market. However, since price has now failed more than four times at that line, there is a great chance that we could see a big drop.
However, if the price is to turn around and break through the resistance line, then a great amount of energy is required to fuel such a move. This kind of energy can only come from a collapse of a big market like the general stock market, or the bond market.
When gold breaks through the resistance line, we will see a gold rally like that of 1979/1980. In fact, there is a peculiar fractal that suggests the current situation for gold is very similar to that of May 1979, just before the massive rise in gold – see the following long-term gold chart (which is self-explanatory):
